FIGURE 6- 2 -Refer to Figure 6- 2. Suppose the Price of Y

Multiple Choice

FIGURE 6- 2
-Refer to Figure 6- 2. Suppose the price of Y is $1 and the consumer's income is $10. Initially, the price of X is $2 and the consumer is buying 3 units of good X and 4 units of good Y. If the price of X then falls to $1, what quantities of X and Y will he/she now purchase in order to maximize total utility?

A) 5 X and 5 Y.
B) 6 X and 4 Y.
C) 2 X and 8 Y.
D) 4 X and 6 Y.
E) 3 X and 7 Y.