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If a Consumer Is Spending All of His/her Income in a Manner

Question 123

Multiple Choice

If a consumer is spending all of his/her income in a manner where MUa / Pa = MUb / Pb, then the consumer:


A) should increase the consumption of A and decrease the consumption of B.
B) is maximizing his/her utility.
C) should increase the consumption of B and decrease the consumption of A.
D) should increase the consumption of both A and B.
E) should decrease the purchases of both A and B.

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