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Given Two Goods, X and Y, Their Prices, PX and PY

Question 133

Multiple Choice

Given two goods, X and Y, their prices, PX and PY, a consumer is in equilibrium when the last dollar spent on X yields


A) zero marginal utility for Y.
B) the same marginal utility as if all the money were spent on Y.
C) a smaller marginal utility than the last dollar spent on Y.
D) the same marginal utility as the last dollar spent on Y.

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