Multiple Choice
The MU/P ratio for good X is greater than the MU/P ratio for good Y as a result of a fall in the price of good X. To achieve consumer equilibrium, the consumer reallocates dollars from the purchase of good Y to the purchase of good X. In the process, she
A) puts downward pressure on prices.
B) maximizes total utility.
C) acts according to the law of demand.
D) b and c
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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