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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 4

9708Utility

A consumer maximises his total utility by initially buying 10 units of good X and 10 units of good Y. Assuming both goods are normal, what would cause this utility-maximising consumer to purchase more of good Y and less of good X?

  1. Aan increase in the marginal utility of good Y
  2. Ban increase in the price of good Y
  3. Can increase in the tax on the consumption of good Y
  4. Dan increase in the tax on the income of consumers

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Correct answer: A. an increase in the marginal utility of good Y

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