FIGURE 6-2
-Refer to Figure 6-2.Suppose the price of X is $2,the price of Y is $1,and the consumer's income is $10.The consumer is currently buying 4 units of good X and 2 units of good Y.In order to maximize his utility,he should
A)make no changes - he is already maximizing his total utility.
B)buy the same amount of X but less Y.
C)buy more of X but the same amount Y.
D)buy more of X and less Y.
E)buy more Y and less X.

Question

FIGURE 6-2
-Refer to Figure 6-2.Suppose the price of X is $2,the price of Y is $1,and the consumer's income is $10.The consumer is currently buying 4 units of good X and 2 units of good Y.In order to maximize his utility,he should
A)make no changes - he is already maximizing his total utility. 
B)buy the same amount of X but less Y. 
C)buy more of X but the same amount Y. 
D)buy more of X and less Y. 
E)buy more Y and less X.

Quizplus · Accepted Answer

The consumer should buy more Y and less X to maximize utility because the marginal utility per dollar spent on Y is higher than that on X, given the current quantities and prices.

FIGURE 6-2 -Refer to Figure 6-2.Suppose the Price of X Is $2,the