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Question: refer to the table above assume that the price of...

Question details

xid-140091261_1Total Utility from Y Total Utility from X 24 42 56 Quantity 85 130 160 185 74 31 84 210 215

Refer to the table above. Assume that the price of good X is $2 per unit, the price of good Y is $5 per unit, and that the consumer spends a total of $44 on both goods.  What combination of X and Y will the consumer purchase in order to maximize utility?

A.

We don’t have enough information of determine his consumption bundle.

B.

He will spend more on X than on Y because X is less expensive than Y.

C.

He will purchase 4 units of Y and 4 units of X.

D.

He will purchase 2 units of Y and 2 units of X.

E.

He will purchase 6 units of Y and 7 units of X.

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