A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 6 and the marginal utility of Y is 12 The unit price of X is $2 and the unit price of Y is $3 The utility maximizing rule suggests that this consumer should Multiple Choice increase consumption of product X and decrease consumption of product Y increase consumption of product X and increase consumption of product Y increase consumption of product Y and decrease consumption of product X stick with the current consumption mix because it yields maximum utility

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Question: A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 6 and

A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 6 and the marginal utility of Y is 12. The unit price of X is $2 and the unit price of Y is $3. The utility-maximizing rule suggests that this consumer should

Multiple Choice

increase consumption of product X and decrease consumption of product Y.
increase consumption of product X and increase consumption of product Y.
increase consumption of product Y and decrease consumption of product X.
stick with the current consumption mix because it yields maximum utility.

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