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

Utility and rational consumer behaviour — practice question

If a rational consumer obtains maximum satisfaction by buying three units of good X and four units of good Y, and both goods have the same dollar price, what does this show?

  • AMarginal utility per dollar spent is equal for both goods.
  • BThe total utility of 3X is equal to the total utility of 4Y.
  • CThe consumer should buy one more unit of good X to maximise utility.
  • DGood Y has greater marginal utility than good X.

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