The MU/P Ratio for Good X Is Greater Than the MU/P

Multiple Choice

The MU/P ratio for good X is greater than the MU/P ratio for good Y. To achieve consumer equilibrium, the consumer reallocates dollars from the purchase of good Y to the purchase of good X. If the law of diminishing marginal utility holds, the marginal utility of good X __________ and the marginal utility of good Y __________.

A) falls, rises
B) rises, falls
C) rises, stays constant
D) falls, stays constant
E) stays constant, rises