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

Question 237

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.

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