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If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of Multiple Choice increases from 2 to 4. stays the same at 2, but the consumer has $1 remaining. decreases from 4 to 3.

If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of Multiple Choice increases from 2 to 4. stays the same at 2, but the consumer has $1 remaining. decreases from 4 to 3.

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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The table shows the total utility data for products S and T. Assume that the prices of S and T are $3 and $5, respectively, and that consumer income is $22. Total Utility 12 27 39 48 51 Units of S 1 2 3 4 5 Multiple Choice If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of T increases from 2 to 4. Units of T 1 2 3 4 5 Total Utility 20 35 45 50 52 decreases from 4 to 3. stays the same at 2, but the consumer has $1 remaining. increases from 2 to 3, but the consumer has $1 remaining.
Transcribed Image Text:The table shows the total utility data for products S and T. Assume that the prices of S and T are $3 and $5, respectively, and that consumer income is $22. Total Utility 12 27 39 48 51 Units of S 1 2 3 4 5 Multiple Choice If the price of T decreases from $5 to $3, while the price of S and the consumer's income stay the same, then the utility-maximizing combination is such that the quantity of T increases from 2 to 4. Units of T 1 2 3 4 5 Total Utility 20 35 45 50 52 decreases from 4 to 3. stays the same at 2, but the consumer has $1 remaining. increases from 2 to 3, but the consumer has $1 remaining.
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