Richard Is Consuming X and Y So That He Is

question 23

Multiple Choice

Richard is consuming X and Y so that he is spending his entire income and MUx/Px = 6 and MUy/Py = 10. To maximize utility, he should

• A) continue to consume the same amount of X and Y since he is already maximizing utility.
• B) consume less of both X and Y.
• C) consume more X and less Y.
• D) consume less X and more Y.

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Definitions:

Teenagers

Young individuals typically between the ages of 13 and 19, undergoing the transition from childhood to adulthood.

Demand for Bicycles

The consumer interest and willingness to buy bicycles, which can be influenced by factors like environmental concerns, health awareness, and economic conditions.

Wages

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.

Demand Increase

A situation where the quantity of a product or service sought by buyers rises due to factors like higher income, changes in taste, or population growth.