Question

question 19
1 pts
suppose a person is receiving greater marginal utility per dollar from consuming good x than from good y
her utility level will increase if she returns some x and uses the refund to purchase more y.
her utility level will increase if she returns some y and uses the refund to purchase more x.
she will not be able to adjust her consumption bundle to increase her utility level
her utility level will increase if she reduces the amounts of both x and y
question 20
1 pts
a util is an artificial construct used as a means of measuring the
price of a good.
satisfaction one receives from the consumption of a good.
costs of producing a good.
difference between the price and the value of a good.

Explanation:

• Question 19:
• The concept of marginal utility per dollar is key. When \(MU_X/P_X>MU_Y/P_Y\) (where \(MU\) is marginal utility and \(P\) is price), re - allocating money from \(Y\) (which gives lower marginal utility per dollar) to \(X\) (which gives higher marginal utility per dollar) increases total utility.
• Question 20:
• A util is a unit of measurement for the satisfaction (utility) a consumer gets from consuming a good. It is not related to price (\(P\)), production cost (\(C\)), or the difference between price and value.

Answer:

• Question 19: Her utility level will increase if she returns some \(Y\) and uses the refund to purchase more \(X\).
• Question 20: satisfaction one receives from the consumption of a good.