A consumer with an income of $240 is spending it all on 12 units of good X and 1

Question

A consumer with an income of $240 is spending it all on 12 units of good X and 18 units of good Y. The price of X is $5 and the price of Y is $10. The marginal utility of the last X is 20 and the marginal utility of the last Y is $30. If the consumer buys one less Y this person can, spending the same income, -----a. increase total utility by 40 with two more units of X. ----b. buy two more X but lose 10 units of utility.----c. buy two more X and increase utility by 10.-----d. buy one more X and reduce utility by 10. ----e. none of the above.

Explanation / Answer

c. buy two more X and increase utility by 10.-----

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