An increase in a consumer's income causes her budget set to encompass [ Select ] ["more", "fewer"] bundles.

If BC2 is the relevant budget constraint, which of the identified bundles (combinations of X and Y goods) can this consumer afford? A. A. B. B. C. C. D. D. E. E. F. F. G. G. H. H. I. I. J. J.

A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 15 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $2. The utility-maximizing rule suggests that this consumer should Multiple Choice a. decrease consumption of product X and increase consumption of product Y. b. increase consumption of product X and increase consumption of product Y. c. decrease consumption of product Y and increase consumption of product X. d. stick with the current consumption mix because it yields maximum utility.