Multiple Choice
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $20.
If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
A) a first unit of X followed by a first unit of Y
B) a first unit of X followed by a second unit of X
C) a first unit of Y followed by a first unit of X
D) a first unit of Y followed by a second unit of Y
Correct Answer:
Verified
Correct Answer:
Verified
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