Answer the question on the basis of the following marginal utility data for products X and Y.Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18. $\begin{array}{c}
\begin{array}{c}
\text {Units}\
\underline{\text {of X }}\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Utility, X}}\
20\
16\
12\
8\
6\
4
\end{array}
\begin{array}{c}
\text {Units}\
\underline{\text {of Y }}\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Utility, Y}}\
16\
14\
12\
10\
8\
6
\end{array}
\end{array}$
Refer to the data.What level of total utility will the utility-maximizing consumer realize?
A) 96 utils.
B) 108 utils.
C) 72 utils.
D) 142 utils.

Question

Answer the question on the basis of the following marginal utility data for products X and Y.Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18. $\begin{array}{c}
\begin{array}{c}
\text {Units}\
\underline{\text {of  X }}\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Utility, X}}\
20\
16\
12\
8\
6\
4
\end{array}
\begin{array}{c}
\text {Units}\
\underline{\text {of  Y }}\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Utility, Y}}\
16\
14\
12\
10\
8\
6
\end{array}
\end{array}$
 Refer to the data.What level of total utility will the utility-maximizing consumer realize?
A) 96 utils.
B) 108 utils.
C) 72 utils.
D) 142 utils.

Quizplus · Accepted Answer

The consumer will buy 4 units of X and 3 units of Y. The total utility from X is 20 + 16 + 12 + 8 = 56 utils. The total utility from Y is 16 + 14 + 12 = 42 utils. The total utility is 56 + 42 = 98 utils.

Answer the Question on the Basis of the Following Marginal