Ron Starts Out in Consumer Equilibrium,consuming Two Goods,X and Y

question 1

Multiple Choice

Ron starts out in consumer equilibrium,consuming two goods,X and Y.The price of Y rises.Immediately after the rise in price

• A)MU_X/P_X > MU_Y/P_Y,and then Ron increases his consumption of Y.
• B)MU_X/P_X > MU_Y/P_Y,and then Ron decreases his consumption of Y.
• C)MU_X/P_X < MU_Y/P_Y,and then Ron increases his consumption of Y.
• D)MU_X/P_X < MU_Y/P_Y,and then Ron decreases his consumption of Y.
• E)none of the above.

---

Definitions:

Soviet Union

The Soviet Union, officially known as the Union of Soviet Socialist Republics (USSR), was a socialist state in Eurasia that existed from 1922 to 1991.

World's First Satellite

Sputnik 1, launched by the Soviet Union in 1957, marking the beginning of space exploration by placing the first artificial object into orbit around Earth.

Medicare

A federal health insurance program in the United States for people aged 65 and over, as well as for some younger people with disabilities.

Established

Set up on a firm or permanent basis, often referring to institutions, organizations, or principles.