Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Pᵧ = 48/8 and MU z/ P_z = 30/5. To maximize utility, without spending more money, the consumer should A)purchase less of Z and more of Y. B)purchase more of Z and less of Y. C)purchase more of both Y and Z. D)make no change in the quantities Y and Z.

Question

Quizplus · Accepted Answer

The consumer should make no change in the quantities of Y and Z because the marginal utility per dollar spent on both products is equal (MUy/Py = MUz/Pz = 6), indicating that the consumer is already maximizing utility given their budget.

Assume That a Consumer Purchases a Combination of Products Y