The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. This implies the consumer should purchase more apples and fewer bananas in order to maximize utility.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. This implies the consumer should purchase more apples and fewer bananas in order to maximize utility.

Quizplus · Accepted Answer

If the marginal utility of bananas is twice as high as that for apples, the consumer should purchase more bananas and fewer apples in order to maximize utility according to the principle of equal marginal utility per dollar spent.

The Below Figure Shows the Various Combinations of the Goods