Jason consumes two goods X and Y. Jason is a rational consumer who wishes to maximize his utility subject to his budget constraint. Jason's preferences are such that he gets the same marginal utility from Good X per dollar of X as the marginal utility from Good Y per dollar of Y. So effectively the slope of his "indifference curves" is the same as the slope of his budget constraint. On the basis of this information, you can conclude that:

Question

Quizplus · Accepted Answer

When a consumer's marginal utility per dollar spent on each good is equal, it means they are optimizing their utility given their budget constraint. This condition is known as the equi-marginal principle and indicates that the consumer has balanced their spending on both goods to achieve maximum satisfaction. Therefore, any combination of the two goods that lies on the budget constraint could potentially maximize Jason's utility, making the utility-maximizing consumption bundle indeterminate without further information.

Jason Consumes Two Goods X and Y