John is currently spending all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $10. The price of Good Y is $1. If John wants to maximize his utility
he should
A) continue to purchase the same amount of Good X and Good Y.
B) increase the consumption of Good X and decrease the consumption of Good Y.
C) decrease the consumption of Good X and increase the consumption of Good Y.
D) decrease the consumption of Good X and decrease the consumption of Good Y.
Answer: C
You might also like to view...
What is the nature of the elasticity of the demand curve faced by perfectly competitive firm?
a. Perfectly inelastic b. Perfectly elastic c. Unit elastic d. Highly elastic
Discuss the benefits of restricting business risk to owners and investors
Please provide the best answer for the statement.
One method unions use to ration available jobs among excess workers is
A) lengthy apprenticeships. B) to hire only white collar workers. C) collective bargaining. D) refuse to unionize.
The demand curve for the product of a monopolistically competitive firm
A. is unitary elastic. B. is perfectly inelastic. C. is perfectly elastic. D. is downward sloping.