If a Consumer Allocates Her Income Between Two Goods,x and Y,then

question 143

Multiple Choice

If a consumer allocates her income between two goods,x and y,then she will be in equilibrium when

• A) MU_x/P_x = MU_y/P_y and she is below her budget constraint
• B) MU_x = MU_y and she has spent all of her income
• C) MU_x/MU_y > P_x/P_y and all of her income is spent
• D) MU_x/P_x = MU_y/P_y and all of her income is spent
• E) MU_x = MU_y and she is below her budget constraint

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Definitions:

Products

Goods, services, or ideas that can be offered to a market to satisfy a want or need.

Direct Marketing

A form of advertising where companies communicate directly to consumers through various media, including mail, email, and telephone.

Coupons

Vouchers or codes that offer a discount or rebate on the purchase price of goods or services.

Previous Customers

Previous customers are individuals or entities that have previously purchased goods or services from a business, representing potential repeat business.