For Any Two Goods,X and Y,if MUX Divided by PX

question 188

Multiple Choice

For any two goods,X and Y,if MUX divided by PX equals 2.5 and MUY divided by PY equals 4.0,then with given income and prices the consumer should

• A)buy more of good X and less of good Y.
• B)buy more of good Y and less of good X.
• C)buy all of good Y and no X.
• D)stop because an equilibrium is achieved.

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