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

question 95

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)MUX/PX > MUY/PY, and then Ron increases his consumption of Y.
• B)MUX/PX > MUY/PY, and then Ron decreases his consumption of Y.
• C)MUX/PX < MUY/PY, and then Ron increases his consumption of Y.
• D)MUX/PX < MUY/PY, and then Ron decreases his consumption of Y.
• E)none of the above.

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Definitions:

International Strategy

A business approach used by companies to expand their operations and market presence across national borders.

National Strategy

A comprehensive plan of action developed by a country to guide decisions and achieve rational outcomes.

Payoff Matrix

A table that shows the potential outcomes or payoffs in a decision-making situation, typically used in game theory to analyze the strategies of different players.

Dominant Strategy

In game theory, a strategy that yields the best outcome for a player, regardless of what the other players do.