A consumer has maximized the amount of satisfaction he can obtain from consuming two goods, given his budget constraints. If the marginal utility of consuming the last unit of good X was 25, and the price of X is $5, and the marginal utility of consuming another unit of Y was 15,

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    then the consumer will consume more of X and less of Y in the next time period because the MUx>MUy.
     then the price of Y must be $3.
     then the consumer must be incorrect because the marginal utility of X is greater than the marginal utility of Y.
     then the price of Y must also be $5.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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then the price of Y must be $3.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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