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Let the Price of Some Good X Exceed the Price

Question 2

Multiple Choice

Let the price of some good X exceed the price of a second good Y.In consumer equilibrium, it must be true that


A) total utility derived from both X and Y has begun to decline.
B) the marginal utility of X exceeds the marginal utility of Y.
C) the marginal utility of X equals the marginal utility of Y.
D) the marginal utility of Y exceeds the marginal utility of X.
E) any of the above could be, depending upon economic circumstance.

Correct Answer:

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