Post Utme Futa 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Futa Economics examination.

Post Utme Futa 2023 Economics Objective / Multiple Choice
Question 39 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 Y than good X.

Answer Options

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

About This Question

This is Post Utme Futa 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Futa Economics examination.

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