If a Consumer Purchases a Combination of Commodities a and B

question 111

Multiple Choice

If a consumer purchases a combination of commodities a and b such that MUₐ/Pₐ = 50 and MUb/Pb = 40, to maximize utility, the consumer should buy:

• A) less of both a and b.
• B) more of both a and b.
• C) more of a and less of b.
• D) less of a and more of b.

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Definitions:

Filing

The process of submitting documents to a designated body or authority (such as a court or public office) for official recording and recognition.

Continuation Statements

Documents filed to continue the effectiveness of a UCC financing statement beyond its original expiration date.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, usually in connection with securing a loan.

Five-Year Period

A fixed duration of time equaling five years, often used in contracts, legal agreements, or statutes of limitations.