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Let MUA and MUB Stand for the Marginal Utility of Goods

Question 107

Multiple Choice

Let MUA and MUB stand for the marginal utility of goods A and B, respectively. Let PA and PB stand for the price of goods A and B, respectively. Which statement must hold for consumer equilibrium?


A) MUA = MUB
B) MUA = MUB and PA = PB
C) MUA/MUB = PB/PA
D) MUA/MUB = PA/PB
E) MUAPA = MUBPB

Correct Answer:

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