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Units of Product Marginal Utility, X (Price = $1) Marginal Utility, Y (Price = $1) Marginal Utility, New Product, Z (Price = $1)
First 12 16 20
Second 10 14 18
Third 8 12 16
Fourth 6 10 14
Fifth 4 8 12
Sixth 2 6 10
Seventh 0 4 8
Refer to the data for a consumer whose income = $12. Suppose the price of new product Z is $10 rather than $1. This consumer would purchase
A. none of Z.
B. some of Z but not as much as if the price were $1.
C. more of X, Y, and Z than if the price were $1.
D. less of X, Y, and Z than if the price were $1.
Answers: 2
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