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

Utility and rational consumer behaviour — practice question

The table shows the marginal utility of two goods, X and Y. Good X has a price of $2.00 and good Y has a price of $1.00. If a consumer spends all of their income on goods X and Y, which combination of goods will they select to maximise their utility?

  • A1 unit of X and 1 unit of Y
  • B3 units of X and 1 unit of Y
  • C3 units of X and 4 units of Y
  • D5 units of X and 1 unit of Y

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