Multiple Choice
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes
A) MU/P of good X to increase, so the consumer now should buy more X to find a new optimal combination
B) demand for good X to increase
C) MU/P of good Y to increase, so the consumer now should buy more Y to find a new optimal combination
D) MU/P of good Y to decrease, so the consumer now should buy more Y to find a new optimal combination
E) the demand for good X and good Y will not change because utility does not depend on price
Correct Answer:

Verified
Correct Answer:
Verified
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