Use the following to answer questions :
Figure 5A-2
-If the household's budget constraint in Figure 5A-2 is AC, then the household will purchase 1.5 units of X and 4.5 units of Y in order to maximize utility.

Question

Use the following to answer questions :
Figure 5A-2 
-If the household's budget constraint in Figure 5A-2 is AC, then the household will purchase 1.5 units of X and 4.5 units of Y in order to maximize utility.

Quizplus · Accepted Answer

Without seeing Figure 5A-2, it's impossible to determine the specific quantities of X and Y that a household will purchase to maximize utility. Utility maximization depends on the specific preferences of the household (represented by indifference curves), the prices of goods X and Y, and the household's budget constraint, none of which are detailed in the question.

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