Refer to the following table. At this level of consumption of goods A and B, the consumer: $$\begin{array} { | l | c | c | }
\hline & \text { Gand A } & \text { Gand B } \
\hline \text { Marpinal utility } & 100 & 500 \
\hline \text { Price } & \mathbf { \$ 2 0 } & \$ 50 \
\hline
\end{array}$$
A)is maximizing satisfaction for the given expenditure.
B)could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing that of B.
C)could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing that of A.
D)should consume only A.

Question

Refer to the following table. At this level of consumption of goods A and B, the consumer: $$\begin{array} { | l | c | c | } 
\hline & \text { Gand A } & \text { Gand B } \
\hline \text { Marpinal utility } & 100 & 500 \
\hline \text { Price } & \mathbf { \$ 2 0 } & \$ 50 \
\hline
\end{array}$$
A)is maximizing satisfaction for the given expenditure.
B)could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing that of B.
C)could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing that of A.
D)should consume only A.

Quizplus · Accepted Answer

The Answer of Refer to the following table. At this level of consumption of goods A and B, the consumer: $$\begin{array} { | l | c | c | } 
\hline & \text { Gand A } & \text { Gand B } \
\hline \text { Marpinal utility } & 100 & 500 \
\hline \text { Price } & \mathbf { \$ 2 0 } & \$ 50 \
\hline
\end{array}$$
A)is maximizing satisfaction for the given expenditure.
B)could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing that of B.
C)could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing that of A.
D)should consume only A.

Refer to the Following Table A)is Maximizing Satisfaction for the Given Expenditure