Multiple Choice
A consumer has the indifference map shown below.The market prices of X and Y are $20 and $50,respectively.The consumer has $500 to spend on goods X and Y.For the utility-maximizing bundle,the marginal rate of substitution is ____________________ the slope of the budget line (in absolute value) ,and the ratio MU/P for good X is ____________ the ratio MU/P for good Y.
A) greater than; greater than
B) greater than; less than
C) less than; greater than
D) less than; less than
E) equal to; equal to
Correct Answer:

Verified
Correct Answer:
Verified
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