Ron Starts Out in Consumer Equilibrium, Consuming Two Goods, X

question 51

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)MUX/PX > MUY/PY, and then Ron increases his consumption of X and Y.

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Definitions:

Committing Suicide

The act of intentionally causing one's own death.

Mental Illness

A broad range of medical conditions that affect a person's thinking, feeling, mood, and behavior, which can be chronic or episodic in nature.

Headache

A pain or discomfort occurring in any area of the head, often varying in intensity, cause, and duration.

Caffeine

A stimulant chemical found in coffee, tea, and certain other plants, known for its ability to enhance alertness and reduce fatigue.