Use the table below to answer the following questions.
Table 8.2.3

-Refer to Table 8.2.3. To attain consumer equilibrium, the first $4 of income is used to purchase
A)2 units of good X.
B)3 units of good X.
C)4 units of good Y.
D)an amount of X and Y that cannot be determined from the table.
E)2 units of good Y and 1 unit of X.

Question

Use the table below to answer the following questions.
Table 8.2.3
 
-Refer to Table 8.2.3. To attain consumer equilibrium, the first $4 of income is used to purchase
A)2 units of good X. 
B)3 units of good X. 
C)4 units of good Y. 
D)an amount of X and Y that cannot be determined from the table. 
E)2 units of good Y and 1 unit of X.

Quizplus · Accepted Answer

Consumer equilibrium is achieved when the marginal utility per dollar spent is equal for all goods. The first $4 is used to purchase 2 units of good Y and 1 unit of X, balancing the marginal utility per dollar spent.

Use the Table Below to Answer the Following Questions