Solved

Suppose Sally Allocates Her Budget Between Two Goods,A and B

Question 80

Multiple Choice

Suppose Sally allocates her budget between two goods,A and B.She spends her entire income on a combination of A and B,for which the ratio of the marginal utility of Good A to its price exceeds the ratio of the marginal utility of Good B to its price.She can increase her total utility by buying _____


A) more A and less B.
B) more B and less A.
C) more A without changing her consumption of B.
D) less B without changing her consumption of A.
E) more B and more A.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions