Exhibit 6-3 Marginal Utility Data for Goods X and Y

Exhibit 6-3 Marginal utility data for goods X and Y $$\begin{array} { | c | c | c | c | } \hline \text { Units of good X } & \begin{array} { c } \text { Marginal utility of } \\\text { good X }\end{array} & \text { Units of good Y } & \begin{array} { c } \text { Marginal utility of } \\\operatorname { good~Y }\end{array} \\\hline 1 & 20 & 1 & 14 \\2 & 16 & 2 & 12 \\3 & 12 & 3 & 10 \\4 & 8 & 4 & 8 \\5 & 4 & 5 & 6 \\\hline\end{array}$$
-As shown in Exhibit 6-3, assume that the price of good X is $2 per unit and the price of good Y is $1 per unit and your budget is $11. If you consume 3 units of good X and 4 units of good Y and maximize utility, you should consume:

A) neither X nor Y.
B) more of X.
C) more of Y.
D) more of both X and Y.
E) less of both X and Y.

Correct Answer:

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