Multiple Choice
Suppose a consumer's level of satisfaction is given by AB2 and he/she has a total of $10 to spend on goods A and B. If the price of A is $1 and the price of B is $2, and assuming you can only purchase whole units (not fractional) of A and B, how many units of A and B should he/she purchase?
A) 2 units of A and 4 units of B.
B) 4 units of A and 3 units of B.
C) 6 units of A and 2 units of B.
D) 0 units of A and 5 units of B.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: Which of the following represents an example
Q16: A good example of marginal reasoning would
Q27: Constrained optimization occurs when:<br>A) An individual makes
Q30: Suppose that market demand for a good
Q31: An example of constrained optimization would be:<br>A)a
Q44: Another term for equilibrium would be:<br>A)a point
Q46: Suppose the equilibrium rent for apartments in
Q49: Currently, 100,000 units of a good are
Q62: Which of the following statements about normative
Q66: Which of the following statements is true?<br>A)Endogenous