Jason consumes two goods, X and Y. Both goods cost $1 per unit. Jason's utility function is such that each additional unit of X he consumes gives him the exact same utils of happiness as each additional unit of Y; in other words, Jason gets the same amount of happiness from each additional unit of X or Y. 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.
Correct Answer:
Verified
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