Multiple Choice
If a consumer is spending all of his/her income in a manner where MUa / Pa is greater than MUb / Pb, then the consumer:
A) is maximizing his/her utility.
B) should increase his/her purchases of B and decrease the purchases of A.
C) should spend more money on both goods.
D) should spend less money on both goods.
E) should increase the purchases of A and decrease the purchases of B.
Correct Answer:

Verified
Correct Answer:
Verified
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