Practice Questions · 9708

The Price System and the Microeconomy

Original StepsToConquer questions written in CAIE style. These are practice questions, not past Cambridge examination questions.

Question 11 marks

Not finished

A consumer buys only goods $X$ and $Y$ . The marginal utility of the last unit of $X$ is 30 and its price is $6. The marginal utility of the last unit of Y is 32 \text{ and } its price is$ 8. What change would move the consumer towards utility maximisation?

A. Buy more $X$ and less $Y$
$B$ . Buy less $X$ and more $Y$
$C$ . Buy more of both goods
$D$ . Make no change because total marginal utility is 62

Your answer

Select one answer1 mark

Predict the economic result before testing each option against the full causal chain.

Practice Questions · 9708

The Price System and the Microeconomy

Original StepsToConquer questions written in CAIE style. These are practice questions, not past Cambridge examination questions.

Question 11 marks

Not finished

A. Buy more $X$ and less $Y$
$B$ . Buy less $X$ and more $Y$
$C$ . Buy more of both goods
$D$ . Make no change because total marginal utility is 62

Your answer

Select one answer1 mark

Predict the economic result before testing each option against the full causal chain.