The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. If the price of X decreases from $3 to $2, while the price of Y and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of X
A) increases from 2 to 3.
B) decreases from 3 to 2.
C) stays the same at 2.
D) increases from 2 to 4.

Question

The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.  If the price of X decreases from $3 to $2, while the price of Y and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of X
A) increases from 2 to 3. 
B) decreases from 3 to 2. 
C) stays the same at 2. 
D) increases from 2 to 4.

Quizplus · Accepted Answer

The Answer of The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.  If the price of X decreases from $3 to $2, while the price of Y and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of X
A) increases from 2 to 3. 
B) decreases from 3 to 2. 
C) stays the same at 2. 
D) increases from 2 to 4.

The Table Shows the Total Utility Data for Products X