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If a Consumer Wishes to Maximize Satisfaction Given Limited Income

Question 27

Multiple Choice

If a consumer wishes to maximize satisfaction given limited income and MUx/Px < MUy/Py then the consumer should:


A) do nothing because she/he is in equilibrium.
B) buy more of X and less of Y.
C) buy more of Y and less of X.
D) buy more of both X and Y.
E) buy less of both X and Y.

Correct Answer:

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