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Suppose a Consumer Knows That at Her Current Bundle, MUx/Px

Question 180

Multiple Choice

Suppose a consumer knows that at her current bundle, MUx/Px > MUy/Py. Is this individual choosing a bundle that maximizes utility? ​


A) ​Yes, because this individual values good X more than good Y.
B) ​Yes, because this individual values good Y more than good X.
C) ​No. This individual should shift consumption from good X to good Y.
D) ​No. This individual should shift consumption from good Y to good X.

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