An Individual Consumes Only Two Goods, X and Y

question 140

Multiple Choice

An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?

• A) MRSxy is at a maximum.
• B) Px/Py = money income.
• C) MRSxy = money income.
• D) MRSxy = Px/Py.
• E) all of the above

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Definitions:

Epigastric

Pertaining to the area of the abdomen over the stomach.

Abdominopelvic Cavity

The body cavity that houses both the abdominal and pelvic organs, including the stomach, liver, intestines, and reproductive organs.

Hypochondriac

Pertaining to the upper outer regions of the abdomen below the cartilage, referring to the ribs.

Acidic Solution

A solution that has a pH less than 7.0, indicating a higher concentration of hydrogen ions than pure water.