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

Utility and rational consumer behaviour — practice question

A consumer reaches maximum total utility when he first purchases 10 units of good X and 10 units of good Y. If both goods are normal, what would make this utility-maximising consumer buy more of good Y and less of good X?

  • Aan increase in the marginal utility of good Y
  • Ban increase in the price of good Y
  • Can increase in the tax on the consumption of good Y
  • Dan increase in the tax on the income of consumers

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