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

Utility and rational consumer behaviour — practice question

The diagram illustrates the marginal utility (MU) that an individual obtains from consuming varying quantities of good X. At the margin, the individual gains two units of utility for every $1 spent. If the price of X is $2, which quantity of good X will he buy?

  • A1
  • B2
  • C4
  • D5

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