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A consumer allocates his expenditure between three goods, X, Y and Z. The table shows the consumer's marginal utilities for these goods and their prices.
A consumer allocates his expenditure between three goods, X, Y and Z.
The table shows the consumer's marginal utilities for these goods and their prices.
good X Y Z
marginal utility (units) 50 30 25
price ($) 20 15 10
How should the consumer's expenditure be reallocated in order to maximise his utility?
A more more less
B more less more
C less more less
D less less more
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