Joanna is deciding between consuming Good X and Good Y. At her current level of consumption, her marginal utility per dollar for Good X is greater than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Joanna needs to:
consume more of Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X |
consume more of Good X until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X. |
consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X. |
consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal. |
continue at her current level of consumption. |
Solution
Joanna is deciding between consuming Good X and Good Y. At her current level of consumption, her marginal utility per dollar for Good X is greater than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Joanna needs to
consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal. Option C.consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal. is Correct Option |
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