Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both equal to $4:

-In order to maximize utility subject to her budget constraint, this consumer should buy how many units of good X?
A) 0
B) 4
C) 6
D) 8
E) 12

Question

Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both equal to $4:
 
-In order to maximize utility subject to her budget constraint, this consumer should buy how many units of good X?
A) 0 
B) 4 
C) 6 
D) 8 
E) 12

Quizplus · Accepted Answer

To determine the optimal number of units of good X, the consumer should equate the marginal utility per dollar spent on good X to that of other goods, considering her budget constraint. Without specific utility and price information, we assume option B (4 units) is the correct choice based on typical utility maximization scenarios.

Refer to the Following Indifference Map for a Consumer Who