Use the following for questions 61-69.

-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.To maximize utility, assuming that the goods are divisible, you would consume:
A) less of both X and Y.
B) more of both X and Y.
C) less of X and more of Y.
D) more of X and less of Y.

Question

Use the following for questions 61-69.
  
-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.To maximize utility, assuming that the goods are divisible, you would consume:
A) less of both X and Y. 
B) more of both X and Y. 
C) less of X and more of Y. 
D) more of X and less of Y.

Quizplus · Accepted Answer

If the price of good Y is lower, it is more likely to consume more of Y and less of X to maximize utility. Therefore, the best choice is to consume less of X and more of Y.

Use the Following for Questions 61-69