Assume that the marginal utility from good A is 10 units and that the price of good A is $5 per unit. The marginal utility from good B is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer should
A) consume more of good A.
B) consume only good B.
C) consume more of good B.
D) consume neither good A nor good B.
Correct Answer:
Verified
Q187: According to utility theory, consumer purchase decisions
Q188: The price of good X is $5
Q189: Q190: In a restaurant we can observe people Q191: The consumer optimum (for two goods, A Q193: A consumer has spent all of his Q194: Consumers do NOT buy as many units
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