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Exhibit 5A-1 -Refer to Exhibit 5A-1. Which of the Following Statements Is

Question 1

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Exhibit 5A-1 Exhibit 5A-1 -Refer to Exhibit 5A-1. Which of the following statements is false? A) At point C, MU<sub>X</sub>/MU<sub>Y</sub> > P<sub>X</sub>/P<sub>Y</sub>. B) Curve I<sub>2</sub> represents a greater level of utility than I<sub>1</sub>. C) If the individual started at point A and moved to point B, the most likely cause was a decrease in the price of X. D) In moving from point A to point B, the individual is moving down along his or her demand curve for good Y. E) At point B, MU<sub>X</sub>/P<sub>X</sub> = MU<sub>Y</sub>/P<sub>Y</sub>.
-Refer to Exhibit 5A-1. Which of the following statements is false?


A) At point C, MUX/MUY > PX/PY.
B) Curve I2 represents a greater level of utility than I1.
C) If the individual started at point A and moved to point B, the most likely cause was a decrease in the price of X.
D) In moving from point A to point B, the individual is moving down along his or her demand curve for good Y.
E) At point B, MUX/PX = MUY/PY.

Correct Answer:

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