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If a Consumer Allocates Income Between Goods X and Y

Question 15

Multiple Choice

If a consumer allocates income between goods x and y, consumer equilibrium occurs when


A) the indifference curve farthest from the origin is reached
B) MUx/Px = MUy/Py and the budget is exhausted
C) marginal utility is maximized
D) MUx = MUy for the last unit consumed of each good
E) consumer surplus equals 0

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