Assume MU_c and MU_d Represent the Marginal Utility That a Consumer

question 60

Multiple Choice

Assume MU_c and MU_d represent the marginal utility that a consumer gets from products C and D,the respective prices of which are P_c and P_d.The consumer will increase his total utility from a specific money outlay by spending more on C and less on D if initially:

• A)
• \[\mathrm { MU } _ { d } < \mathrm { MU } _ { c }\]
• B)
• \[\frac { \mathrm { MU } _ { c } } { P _ { c } } < \frac { \mathrm { MU } _ { d } } { P _ { c } }\]
• C)
• \[\frac { \mathrm { MU } _ { c } } { P _ { c } } > \frac { \mathrm { MU } _ { d } } { P _ { d } }\]
• D)
• \[\mathrm { MU } _ { d } > \mathrm { MU } _ { c }\]

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