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Aliun [14]
4 years ago
9

Peter is deciding between consuming Good X and Good Y. At his current level of consumption, his marginal utility per dollar for

Good X is less than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Peter needs to?
Social Studies
1 answer:
GalinKa [24]4 years ago
5 0

Answer:

Peter needs to consume more of the good Y.

Explanation:

Marginal utility is the additional satisfaction the individual has in consuming one unit more than one good. In this case, the marginal utility of consuming good y is greater than the marginal utility of consuming good x. Thus, to maximize its consumption, Peter will consume more of the good Y, which will give him greater satisfaction.

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