Exhibit 6-3 Marginal utility data for goods X and Y
Units of good X
Marginal utility ofgood X
Units of good Y
Marginal utility ofgood Y
1
20
1
14
2
16
2
12
3
12
3
10
4
8
4
8
5
4
5
6
As shown in Exhibit 6-3, assume that the price of good X is $1 per unit and the price of good Y is $2 per unit and your budget is $13. If you consume 4 units of good X and 2 units of good Y and maximize utility, you should consume:
A. neither X nor Y.
B. more of X and less of Y.
C. more of Y.
D. more of both X and Y.
Answer: D
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