Use the following for questions 61-69.

-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _______ units of X and _______ units of Y.
A) 0; 1
B) 1; 5
C) 4; 6
D) 5; 5

Question

Use the following for questions 61-69.
  
-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _______ units of X and _______ units of Y.
A) 0; 1 
B) 1; 5 
C) 4; 6 
D) 5; 5

Quizplus · Accepted Answer

To maximize utility with a budget of $10, if you buy 1 unit of X for $5, you have $5 left. With the price of Y at $1 per unit, you can buy 5 units of Y. This combination uses the entire budget.

Use the Following for Questions 61-69