The Below Table Shows the Average Utility (In Utils) Obtained

question 116

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Assume that a consumer purchases a combination of products X and Y and MU_x / P_x = 75 utils per dollar and MU_y / P_y = 50 utils per dollar. To maximize utility without spending more dollars, the consumer should buy:

• A)more of both X and Y.
• B)less of Y only if the price of Y increases.
• C)more of Y and less of X.
• D)more of X and less of Y.
• E)less of both X and Y.

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Definitions:

Free-enterprise Economy

An economic system in which private business operates in competition and largely free of state control, with the right to buy, sell, and conduct business.