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Suppose a Consumer Buys Two Goods, and and Has

Question 41

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Suppose a consumer buys two goods, Suppose a consumer buys two goods, and and has income of $30.Initially P<sub>x</sub> = 3 and P<sub>y</sub> = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P<sub>x</sub> = 4 and P<sub>y</sub> = 2 and the consumer chooses basket with x = 5 and y = 5. A) These choices are consistent with utility maximization. B) These choices are not consistent with utility maximization. C) With this information it is not possible to determine if these choices are consistent with utility maximization. D) Basket B must be preferred to basket A. and Suppose a consumer buys two goods, and and has income of $30.Initially P<sub>x</sub> = 3 and P<sub>y</sub> = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P<sub>x</sub> = 4 and P<sub>y</sub> = 2 and the consumer chooses basket with x = 5 and y = 5. A) These choices are consistent with utility maximization. B) These choices are not consistent with utility maximization. C) With this information it is not possible to determine if these choices are consistent with utility maximization. D) Basket B must be preferred to basket A. and has income of $30.Initially Px = 3 and Py = 3 and the consumer chooses basket Suppose a consumer buys two goods, and and has income of $30.Initially P<sub>x</sub> = 3 and P<sub>y</sub> = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P<sub>x</sub> = 4 and P<sub>y</sub> = 2 and the consumer chooses basket with x = 5 and y = 5. A) These choices are consistent with utility maximization. B) These choices are not consistent with utility maximization. C) With this information it is not possible to determine if these choices are consistent with utility maximization. D) Basket B must be preferred to basket A. with x = 7 and y = 1.The prices change to Px = 4 and Py = 2 and the consumer chooses basket Suppose a consumer buys two goods, and and has income of $30.Initially P<sub>x</sub> = 3 and P<sub>y</sub> = 3 and the consumer chooses basket with x = 7 and y = 1.The prices change to P<sub>x</sub> = 4 and P<sub>y</sub> = 2 and the consumer chooses basket with x = 5 and y = 5. A) These choices are consistent with utility maximization. B) These choices are not consistent with utility maximization. C) With this information it is not possible to determine if these choices are consistent with utility maximization. D) Basket B must be preferred to basket A. with x = 5 and y = 5.


A) These choices are consistent with utility maximization.
B) These choices are not consistent with utility maximization.
C) With this information it is not possible to determine if these choices are consistent with utility maximization.
D) Basket B must be preferred to basket A.

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