Economics 11th Edition by William McEachern

Exercise 15

UTILITY-MAXIMIZING CONDITIONS Suppose that the price of X is twice the price of Y. You are a utility maximizer who allocates your budget between the two goods. What must be true about the equilibrium relationship between the marginal utility levels of the last unit consumed of each good? What must be true about the equilibrium relationship between the marginal utility levels of the last dollar spent on each good?