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Assume That the Marginal Utility from Good X Is 10

Question 312

Multiple Choice

Assume that the marginal utility from good x is 10 units and that the price of good x is $5 per unit. The marginal utility from good y is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer should


A) consume more of good x.
B) consume only good y.
C) consume more of good y.
D) consume neither x nor y.

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