Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Pᵧ = 30/2 and MU z/ P_z = 45/3. To maximize utility, without spending more money, the consumer should A)purchase less of Y and more of Z. B)purchase more of Y and less of Z. C)purchase more of both Y and Z. D)make no change in the quantities Y and Z.

Question

Quizplus · Accepted Answer

The consumer is already maximizing utility because the marginal utility per dollar spent is equal for both products (15 for Y and 15 for Z).

Assume That a Consumer Purchases a Combination of Products Y