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Assume That a Consumer Purchases a Combination of Products

Question 251

Multiple Choice

Assume that a consumer purchases a combination of products. Product A is an old and reliable product. Product B is a new and appealing product. The MU ₐ /P ₐ = 40 and MU ᵦ /P ᵦ = 45. To maximize utility without spending more money, the consumer should


A) purchase less of A and more of B.
B) purchase more of B and less of A.
C) purchase more of both A and B.
D) make no change in A and B.

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