Given Two Goods, X and Y, Their Prices, P_X and P_Y

question 133

Multiple Choice

Given two goods, X and Y, their prices, P_X and P_Y, a consumer is in equilibrium when the last dollar spent on X yields

• A)zero marginal utility for Y.
• B)the same marginal utility as if all the money were spent on Y.
• C)a smaller marginal utility than the last dollar spent on Y.
• D)the same marginal utility as the last dollar spent on Y.

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Definitions:

Pallets

Wooden, plastic, or metal platforms used to store and transport goods in a stackable form.

Partnering Relationship

A collaborative agreement between two or more entities to work together towards common objectives, sharing risks, responsibilities, and rewards.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Honest

Characterized by truthfulness, integrity, and fairness, often considered a vital ethical principle in personal and professional contexts.