-Refer to the above table. If the price of Good X is $2, the price of Good Y is $2, and the consumer has $14, the rational consumer will purchase
A) 3 units of Good X and 4 units of Good Y.
B) 6 units of Good X and 6 units of Good Y.
C) 6 units of Good X and 0 units of Good Y.
D) 3 units of Good X and 3 units of Good Y.

Question

-Refer to the above table. If the price of Good X is $2, the price of Good Y is $2, and the consumer has $14, the rational consumer will purchase
A) 3 units of Good X and 4 units of Good Y. 
B) 6 units of Good X and 6 units of Good Y. 
C) 6 units of Good X and 0 units of Good Y. 
D) 3 units of Good X and 3 units of Good Y.

Quizplus · Accepted Answer

The consumer can spend $14 on goods. Buying 3 units of Good X ($6) and 4 units of Good Y ($8) uses the entire budget and maximizes utility.

-Refer to the Above Table