Post Utme Futa 2023 Economics Question 35

Practice objective / multiple choice question 35 from the 2023 Post Utme Futa Economics examination.

Post Utme Futa 2023 Economics Objective / Multiple Choice
Question 35 POST_UTME_FUTA • 2023 • ECONOMICS • objective

A consumer is faced with the following budget constraint: 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. The consumer's utility function is given by U(x,y) = 2x + 3y. U\sing the concept of indifference curves, explain why the consumer might choose to consume more of good X than good Y.

Answer Options

Correct Answer A. The consumer prefers good X to good Y because it has a higher marginal utility.
B. The consumer prefers good X to good Y because it is cheaper.
C. The consumer prefers good X to good Y because it has a higher income elasticity of demand.
D. The consumer prefers good X to good Y because it has a higher cross-price elasticity of demand.
Correct Answer
A
Correct Option:
The consumer prefers good X to good Y because it has a higher marginal utility.

About This Question

This is Post Utme Futa 2023 Economics Question 35. It is one of the objective questions from the 2023 Post Utme Futa Economics examination.

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