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A Consumer Is Using Two Goods (X and Y) So

question 9

Essay

A consumer is using two goods (X and Y) so that her MRS is 4/3 and her relative price ratio is 7/8. Is the consumer maximizing her utility? If so, why? If not, what must she do to move her consumption toward equilibrium?


Definitions:

Organizing

The act of arranging and coordinating activities and responsibilities in an efficient and orderly structure within an organization or for any project.

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