A Consumer Had Been Consuming Product X for Some Time

A consumer had been consuming product X for some time. This period, she buys fewer X in order to try some units of a new product Y. She finds that her marginal utility of X is 20 (at a price of $10 per unit) , while the marginal utility of Y is 36 (at a price of $12) . The utility-maximizing rule suggests that this consumer should

A) increase consumption of product X because of its lower price.
B) increase consumption of product X because it is an old reliable product.
C) increase consumption of product Y because it has a higher MU/P.
D) increase consumption of product Y because it has a higher MU.

Correct Answer:

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