Solved

If a Consumer Derives More Utility by Spending an Additional

Question 228

Multiple Choice

If a consumer derives more utility by spending an additional $1 on good X rather than on good Y, then:


A) MUx/Px > MUy/Py.
B) MUx/Px = MUy/Py.
C) MUx/Px < MUy/Py.
D) Px/MUx > Py/MUy.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q33: According to the substitution effect, a decrease

Q102: A budget constraint is:<br>A) a consumer's restriction

Q109: The law of diminishing marginal utility indicates

Q151: You decide to increase the quantity of

Q164: Assume that a person is consuming the

Q167: The law of diminishing marginal utility:<br>A) is

Q181: The increase in quantity demanded due to

Q183: If two combinations of two goods yield

Q229: The slope of a(n) _ curve shows

Q231: Use the following to answer question(s): Consumer