Multiple Choice
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5, and the price of product Beta is $10. The utility-maximizing rule suggests that, to stay within a given budget constraint, this consumer should
A) increase consumption of product Beta and decrease consumption of product Alpha.
B) increase consumption of product Beta and increase consumption of product Alpha.
C) increase consumption of product Alpha and decrease consumption of product Beta.
D) makeno change in the consumption of Alpha or Beta.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: Indifference curves are convex to the origin
Q56: A consumer's demand curve for a product
Q72: The income effect of a price increase
Q173: A child is given $4 of pocket
Q175: Assume that a consumer purchases a combination
Q179: Answer the question based on the table
Q241: With diminishing marginal utility, if a consumer
Q278: With a fixed money income, an increase
Q305: An indifference curve<br>A)may be either upsloping or
Q354: Prashanth decides to buy a $75 ticket