Phillip is deciding between consuming Good X and Good Y. At his current level of consumption, his marginal utility per dollar for Good X is less than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Phillip needs to:
A) consume more of Good Y until the marginal utility per dollar for Good X is greater than the marginal utility for Good Y.
B) consume less of Good X or more of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
C) consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
D) consume less of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
E) continue at his current level of consumption.
Correct Answer:
Verified
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