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.
Correct Answer:

Verified
Correct Answer:
Verified
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