Solved

Assume That an Individual Consumes Two Goods,X and Y Given the Above,if the Consumer Has $65 to Spend on Utility

Question 56

Multiple Choice

Assume that an individual consumes two goods,X and Y.The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10.  Units of the GOOd12345678 Total Utility of X5095135170200225245160 Total Utility of y40075095011001220132014001450\begin{array}{c}\begin{array}{l}\text { Units of the GOOd} \\1\\2 \\3 \\4 \\5 \\6 \\7\\8\end{array}\begin{array}{l}\text { Total Utility of } X\\50 \\95 \\135 \\170 \\200 \\225 \\245\\160\end{array}\begin{array}{l}\text { Total Utility of } y\\400 \\750 \\950 \\1100 \\1220 \\1320 \\1400 \\1450 \end{array}\end{array}
Given the above,if the consumer has $65 to spend on X and Y,the utility-maximizing bundle is


A) 3X and 5Y.
B) 4X and 4Y.
C) 5X and 2Y.
D) 1X and 6Y.
E) 2X and 7Y.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents