Question: 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
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 $4. The income of the consumer is $24.
| Product X | Product Y | ||
|---|---|---|---|
| Quantity | MUX | Quantity | MUY |
| 1 | 32 | 1 | 24 |
| 2 | 28 | 2 | 20 |
| 3 | 24 | 3 | 16 |
| 4 | 20 | 4 | 12 |
| 5 | 16 | 5 | 8 |
If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility?
Multiple Choice
- 3X and 3Y
- 4X and 2Y
- 5X and 1Y
- 1X and 5Y
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