Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20.
If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
A) a first unit of X followed by a first unit of Y
B) a first unit of X followed by a second unit of X
C) a first unit of Y followed by a first unit of X
D) a first unit of Y followed by a second unit of Y

Question

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20.
 If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
A) a first unit of X followed by a first unit of Y 
B) a first unit of X followed by a second unit of X 
C) a first unit of Y followed by a first unit of X 
D) a first unit of Y followed by a second unit of Y

Quizplus · Accepted Answer

The Answer of Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20.
 If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
A) a first unit of X followed by a first unit of Y 
B) a first unit of X followed by a second unit of X 
C) a first unit of Y followed by a first unit of X 
D) a first unit of Y followed by a second unit of Y

Answer the Question Based on the Table Below Showing the Marginal