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When Income Is Allocated to Two Goods, X and Y

Question 49

Multiple Choice

When income is allocated to two goods, x and y, consumer equilibrium occurs when


A) MUx = MUy
B) MUx = MUy, and the budget is exhausted
C) MUx/Py = PUx/Py
D) MUx/Py = PUx/Py, and some money is not spent
E) MUx/Py = PUx/Py, and the budget is exhausted

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