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:

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Interest Accrued

The amount of interest that has accumulated over time but has not yet been paid or charged.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.