(circle one choice) Given a set amount of money, goods A and B both give the sam

Question

(circle one choice) Given a set amount of money, goods A and B both give the same marginal utility but good A costs twice as much as good B. You should: consume more of good A and less of good B. consume more of good B and less of good A. keep consuming the current amounts of both good A and good B. realize that you don't have enough information to answer the question. (circle one choice) When marginal utility is zero, total utility is: increasing. decreasing. zero. at its maximum.

Explanation / Answer

3> as the good B is cheaper and gives the same satisfaction (utility) it is very rational that you will consume the good B more than good A. But we dont know whether they are substitutional goods are not so to be more precise we cannot say anything so the ans is D D is the correct answer cheers :)

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