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Let There Be Two Goods, X and Y

Question 59

Multiple Choice

Let there be two goods, X and Y.For individual A, the marginal utility of X is 2 while the marginal utility of Y is 1.If the prices of X and Y were both equal to $10, then individual A could improve his welfare even without an infusion of extra income by consuming:


A) more X even at the expense of consuming less Y.
B) more Y even at the expense of consuming less X.
C) more X only if consumption of Y could be maintained at the original level.
D) less X, but only if consumption of Y could be maintained at the original level.
E) none of the above.

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