Final answer:
To maximize utility, the consumer should purchase more of good X and less of good Y, as the marginal utility per dollar spent is higher for good X (20 units) than for good Y (10 units).
Step-by-step explanation:
The question pertains to a concept in microeconomics known as utility maximization. The objective of utility maximization is to get the most satisfaction or utility out of the goods and services a consumer can afford. According to the general principle, to maximize utility, the consumer should equalize the marginal utility per dollar spent across all goods and services. In this case, the marginal utility per dollar spent on good X is 20 units of utility per dollar, and for good Y, it is 10 units of utility per dollar.
For the consumer to maximize utility, they should adjust their consumption to the point where the ratio of the marginal utilities to their respective prices is equal for both goods. This means the consumer should purchase more of good X and less of good Y, since the utility gained per dollar spent on X is higher than that for Y. The consumer should buy more of X and less of Y to maximize utility. The consumer is buying goods X and Y, and their respective ratios of marginal utility to price are MUx/-Px = 20 units of utility per dollar and MUy/Py = 10 units of utility per dollar. To maximize utility, the consumer should allocate their budget in such a way that the two ratios are equal. If MUx/-Px = 20 and MUy/Py = 10, then it means that the consumer is getting more utility per dollar spent on X compared to Y. Therefore, to maximize utility, the consumer should buy more of X and less of Y.