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Jason Consumes Two Goods X and Y

Question 19

Multiple Choice

Jason consumes two goods X and Y. Both goods cost $1 per unit. However, Jason's utility function is such that each additional unit of Y he consumes gives him two utils of happiness while each additional unit of X he consumes gives him one util of happiness; in other words, each additional unit of Y gives Jason twice as much utility as each additional unit of X. Which of the following statements is correct?


A) Jason's preferences violate non-satiation (the "more is better" axiom) .
B) In order to maximize his utility, Jason should only consume Good X.
C) Jason will be indifferent between consuming only Good X, only Good Y or any potential combination of the two goods.
D) In order to maximize his utility, Jason should only consume Good Y.

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