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

Question

Use the following to answer question: 
-(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $5 per unit,that the price of good Y is $1 per unit,and that you have $10 to spend on both goods.To maximize utility,you would consume _____ unit(s)of X and _____ unit(s)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 the price of good X is $5 and the price of good Y is $1, buying 1 unit of X ($5) and 5 units of Y ($5) utilizes the entire budget efficiently.

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