Multiple Choice
If John consumes only two goods, A and B, and he is maximizing his utility subject to his budget constraint,
A) MUA/MUB equals the ratio of the price of A to the price of B.
B) MUA/MUB equals 1.
C) MUA/MUB equals the ratio of the total utility of A to the total utility of B.
D) MUA/MUB is at a maximum.
E) MUA/MUB equals zero.
Correct Answer:

Verified
Correct Answer:
Verified
Q24: An indifference curve plotted for two different
Q45: Any consumption point that is on the
Q46: Consumer surplus<br>A) is the total value that
Q47: The paradox in "the paradox of value"
Q48: If the income effect is negative and
Q51: A demand curve for a normal good
Q52: In indifference curve analysis, the consumer's utility-
Q53: Consumer surplus is<br>A) the same as total
Q54: The diagram below shows a set of
Q55: The table below shows the total