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Refer to the Diagram, Where Xy Is the Relevant Budget

Question 198

Multiple Choice

Refer to the diagram, where xy is the relevant budget line and I1, I2, and I3 are indifference curves. At point K, Refer to the diagram, where xy is the relevant budget line and I<sub>1</sub>, I<sub>2</sub>, and I<sub>3</sub><sub> </sub>are indifference curves. At point K, A) MU<sub>x</sub><sub> </sub>= MU<sub>y</sub>. B) MRS = P<sub>x</sub>/P<sub>y</sub>. C) MRS = P<sub>y</sub>/P<sub>x</sub>. D) P<sub>x</sub><sub> </sub>exceeds P<sub>y</sub>.


A) MUx = MUy.
B) MRS = Px/Py.
C) MRS = Py/Px.
D) Px exceeds Py.

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