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Let MUA and MUB Stand for the Marginal Utility of Goods

Question 111

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. Assume that for a given consumer MUA and MUB are equal to each other, and PA is greater than PB. In this case, the consumer is better off if he consumes


A) more of good A and less of good B.
B) less of good A and more of good B.
C) equal amount of goods A and B.
D) good B only.
E) neither good A nor good B.

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