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Assume MUc and MUd Represent the Marginal Utility That a Consumer

Question 60

Multiple Choice

Assume MUc and MUd represent the marginal utility that a consumer gets from products C and D,the respective prices of which are Pc and Pd.The consumer will increase his total utility from a specific money outlay by spending more on C and less on D if initially:


A)
MUd<MUc\mathrm { MU } _ { d } < \mathrm { MU } _ { c }
B)
MUcPc<MUdPc\frac { \mathrm { MU } _ { c } } { P _ { c } } < \frac { \mathrm { MU } _ { d } } { P _ { c } }
C)
MUcPc>MUdPd\frac { \mathrm { MU } _ { c } } { P _ { c } } > \frac { \mathrm { MU } _ { d } } { P _ { d } }
D)
MUd>MUc\mathrm { MU } _ { d } > \mathrm { MU } _ { c }

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