The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8. If the price of B falls to $1, while the price of A and the consumer's income stay the same, what would be the utility-maximizing combination of goods A and B?
A)5 A and 3 B
B)4 A and 4 B
C)3 A and 5 B
D)2 A and 6 B

Question

The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8.  If the price of B falls to $1, while the price of A and the consumer's income stay the same, what would be the utility-maximizing combination of goods A and B?
A)5 A and 3 B 
B)4 A and 4 B 
C)3 A and 5 B 
D)2 A and 6 B

Quizplus · Accepted Answer

The Answer of The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8.  If the price of B falls to $1, while the price of A and the consumer's income stay the same, what would be the utility-maximizing combination of goods A and B?
A)5 A and 3 B 
B)4 A and 4 B 
C)3 A and 5 B 
D)2 A and 6 B

The Table Shows the Marginal-Utility Schedules for Goods a and B