Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2, respectively, and that the consumer's income is $18. If the price of X decreases to $2, then the utility-maximizing combination of the two products is
A)2 of X and 5 of Y.
B)4 of X and 6 of Y.
C)6 of X and 3 of Y.
D)4 of X and 5 of Y.

Question

Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2, respectively, and that the consumer's income is $18.  If the price of X decreases to $2, then the utility-maximizing combination of the two products is
A)2 of X and 5 of Y. 
B)4 of X and 6 of Y. 
C)6 of X and 3 of Y. 
D)4 of X and 5 of Y.

Quizplus · Accepted Answer

The Answer of Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2, respectively, and that the consumer's income is $18.  If the price of X decreases to $2, then the utility-maximizing combination of the two products is
A)2 of X and 5 of Y. 
B)4 of X and 6 of Y. 
C)6 of X and 3 of Y. 
D)4 of X and 5 of Y.

Answer the Question on the Basis of the Following Marginal