Micro

Consumer Behaviour

Medium

Savita consumes 2 goods X and Y. If marginal utility of X is 30 utils and that of Y is 45 utils. Prices of both goods X and Y are Rs. 3 and Rs. 5 respectively. Savita will consume ________.

More of good X

More of good Y

More of both good X and good Y

More of either good X or good Y

✅ Correct Option: 1

For consumer equilibrium: $\frac{MU_X}{P_X} = \frac{MU_Y}{P_Y}$ .

$\frac{MU_X}{P_X} = \frac{30}{3} = 10$ and $\frac{MU_Y}{P_Y} = \frac{45}{5} = 9$ .

Since $\frac{MU_X}{P_X} > \frac{MU_Y}{P_Y}$ , Savita gets more utility per rupee from X. She will consume more of good X (and less of Y) until equilibrium is reached.

2024: 16 May

Which of the following are correct statements?

2023: 1 June Shift 1

Which of the following inequality represents the consumer's budget constraint ?

2025: 15 May Shift 1

The total satisfaction derived from consuming the given amount of commodity X is known as _______

2026: 12 May Shift 1

The indifference curve for goods $x_1$ and $x_2$ is sloped downwards when?

2026: 23 May Shift 1

Which one of the following statements is most suitable to the law of diminishing marginal utility?

2026: 11 May Shift 2

Suppose 6 bananas gives 15 units of total utility and 7 bananas gives 18 units of total utility. The Marginal Utility of the 7th banana will be _______.

Savita consumes 2 goods X and Y. If marginal utility of X is 30 utils and that of Y is 45 utils. Prices of both goods X and Y are Rs. 3 and Rs. 5 respectively. Savita will consume ________.

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)