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FIGURE 6-2 -Refer to Figure 6-2.Suppose the Price of Y Is $1

Question 106

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

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