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.
Correct Answer:

Verified
Correct Answer:
Verified
Q54: The theory of "consumer surplus" really says
Q55: If we know each consumer's demand curve,
Q56: Consumer surplus is the gap between the
Q57: The price of good X is $1.50
Q58: Economists assume that consumers make rational and
Q60: Two goods are considered to be independent
Q61: A higher price for a good reduces
Q62: If the price of beef goes up
Q63: At a consumer's equilibrium demand choices for
Q64: Total utility tends to rise as the