Suppose That at Your Current Consumption of Two Goods, a and B

question 74

Multiple Choice

Suppose that at your current consumption of two goods, A and B, MUA/PA = 25 and MUB/PB = 20. In order to maximize, your utility you should:

• A)leave your spending unchanged.
• B)purchase less of A and more of B.
• C)purchase more of A and less of B.
• D)purchase less of A and B.

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Definitions:

Plate Tectonics

A theory in which the lithosphere is divided into a number of mostly rigid plates that move relative to one another, causing tectonic activity along these boundaries.

Tectonic Plate

A massive, irregularly shaped slab of solid rock, part of the Earth's lithosphere, which moves and interacts with other plates in a process that shapes the Earth's surface.

Centimeters

A unit of length in the metric system equal to one hundredth of a meter.

Magnetic Stripes

Patterns of alternating magnetic polarity found on the ocean floor parallel to mid-ocean ridges, providing evidence for the theory of plate tectonics and seafloor spreading.