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, and the price of Y is also $5, then

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    the marginal utility per dollar for X is greater than for Y, and so the consumer should consume more Y and less X until the marginal utility of Y increases to same level as X.
     the marginal utility per dollar for X is greater than for Y, and the consumer should choose a market basket with more Y and less X in order to increase satisfaction.
     the marginal utility per dollar for X is greater than for Y, and so the consumer should choose a market basket with more X and less Y in order to increase satisfaction.
     the consumer should choose a market basket comprised of only good X, since the marginal utility per dollar is higher for good X than good Y.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the marginal utility per dollar for X is greater than for Y, and so the consumer should choose a market basket with more X and less Y in order to increase satisfaction.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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