Assume that an individual consumes two goods,X and Y.The total utility assumed measurable)of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10. Given the above,if the consumer has $110 to spend on X and Y,which combination will the consumer choose?
A)5X and 4Y
B)6X and 8Y
C)7X and 6Y
D)8X and 7Y
E)7X and 7Y

Question

Assume that an individual consumes two goods,X and Y.The total utility assumed measurable)of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10.  Given the above,if the consumer has $110 to spend on X and Y,which combination will the consumer choose?
A)5X and 4Y 
B)6X and 8Y 
C)7X and 6Y 
D)8X and 7Y 
E)7X and 7Y

Quizplus · Accepted Answer

The Answer of Assume that an individual consumes two goods,X and Y.The total utility assumed measurable)of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10.  Given the above,if the consumer has $110 to spend on X and Y,which combination will the consumer choose?
A)5X and 4Y 
B)6X and 8Y 
C)7X and 6Y 
D)8X and 7Y 
E)7X and 7Y

Assume That an Individual Consumes Two Goods,X and Y