A consumer spends her entire income purchasing two goods: good A and good B. The maginalanily of de last unit of good A purchased is 600, and the price of good A is $20. The marginal uiliy of telet mief good B purchased is 45, and the price of good B is Sl.50. To maximize utiliy, the consumer should O purchase more of good A and less of good B O purchase more of good B and less of g0od A maintain the cuITent combination of goods A and B O purchase more of both goods O purchase less of both goods
A consumer spends her entire income purchasing two goods: good A and good B. The maginalanily of de last unit of good A purchased is 600, and the price of good A is $20. The marginal uiliy of telet mief good B purchased is 45, and the price of good B is Sl.50. To maximize utiliy, the consumer should O purchase more of good A and less of good B O purchase more of good B and less of g0od A maintain the cuITent combination of goods A and B O purchase more of both goods O purchase less of both goods
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Transcribed Image Text:A consumer spends her entire income purchasing two goods: good A and good B. The marginal mily of de
last unit of good A purchased is 600, and the price of good A is S.20. The maginal utilty of de lst mn ef
good B purchased is 45, and the price of good Bis SI.50. To maximize utiliy, the consumer sould
O purchase more of good A and less of good B
O purchase more of good B and less of good A
O maintain the current combination of goods A andB
O purchase more of both goods
O purchase less of both goods
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