Asked by
Heidi Perez
on Dec 08, 2024
Verified
Geneva is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 36. Geneva's utility is only maximized if
A) the prices of X and Y are the same.
B) the price of good X is twice that of good Y.
C) the price of good Y is twice that of good X.
D) We cannot determine whether Geneva is maximizing her utility.
Marginal Utility
The boost in satisfaction or usefulness experienced by someone when they consume another unit of a good or service.
Spending
The process of spending money to buy goods or services.
Income
The amount of money received over a period of time through work, business, investments, or other sources.
- Engage the utility maximization model to assess consumer selections amongst a range of products.
- Manage the process of identifying the most favorable consumption choices within the scope of financial restrictions.
Verified Answer
AS
Learning Objectives
- Engage the utility maximization model to assess consumer selections amongst a range of products.
- Manage the process of identifying the most favorable consumption choices within the scope of financial restrictions.