When a Person Consumes Two Goods (A and B), That

question 9

Multiple Choice

When a person consumes two goods (A and B) , that person's utility is maximized when the budget is allocated such that:

• A) the marginal utility of A equals the marginal utility of B.
• B) the marginal utility of A times the price of A equals the marginal utility of B times the price of B
• C) the ratio of total utility of A to the price of A equals the ratio of the marginal utility of B to the price of A.
• D) the ratio of the marginal utility of A to the price of A equals the ratio of the marginal utility of B to the price of B.

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Definitions:

Breathing

Breathing is the physiological process of taking air into the lungs and expelling it, essential for respiration and oxygen intake.

Striated

Having a series of ridges, stripes, or lines, commonly referring to muscle tissue that appears striped under a microscope due to the arrangement of muscle fibers.

Cardiac Muscle

Specialized muscle tissue found only in the heart, characterized by involuntary contractions that pump blood throughout the body.

Neurons

Specialized cells transmitting nerve impulses; the basic working units of the brain and nervous system.