Suppose That MUx/Px Exceeds MUy/Py

question 10

Multiple Choice

Suppose that MUx/Px exceeds MUy/Py.To maximize utility,the consumer who is exhausting her income should buy:

• A)less of X only if its price falls
• B)more of Y only if its price rises
• C)more of Y and less of X
• D)more of X and less of Y
• E)the same amounts of X and Y

---

Definitions:

Vesting

The process by which an employee earns the right to receive full benefits from the employer's contribution to a pension plan or stock option plan over time.

Completed

The state of having finished all parts or aspects of a particular task or process successfully.

Assignment

The transfer of rights, property, or obligations from one party to another, often seen in contracts and lease agreements.

Contractual Obligations

Duties that a party is legally bound to perform as per the terms of a contract.