Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

The table gives the total utility an individual gains from consuming various quantities of a good. The individual’s marginal utility of money is $1 = 3 units of utility. What is the maximum quantity of the good that the individual will buy when its price is $4?

  • A2 units
  • B3 units
  • C4 units
  • D5 units

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