Assume That the Consumer Is Correctly Applying the Rational Spending

Multiple Choice

Assume that the consumer is correctly applying the rational spending rule for goods X and Z.The proper sequence of events is

A) the price of X falls,then purchases of X increase,then MU_x/P_x falls.
B) purchases of X increases,then the price of X falls,then MU_x/P_x falls.
C) MU_x/P_x falls,then the price of X falls,then purchases of X increase.
D) the price of X falls,then MU_x/P_x increases,then purchases of X increase.
E) purchase of X increase,then MU_x/P_x falls,then the price of X falls.