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MMLU / Carmen spends her entire weekly income on two goods: X and Y. At her current…

Problem

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question

Carmen spends her entire weekly income on two goods: X and Y. At her current consumption level of the two goods, the marginal utility of the last dollar spent on good X is 5 and the marginal utility of the last dollar she spent on good Y is 10. To maximize her utility, Carmen should

choices

  1. maintain her current consumption level of the two goods
  2. buy fewer units of X and more units of Y
  3. buy fewer units of Y and more units of X
  4. buy fewer units of both X and Y

subject

miscellaneous

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