Multiple Choice
Suppose that the ratio of marginal utility to price for good A is 10, and the ratio of marginal utility to price for good B is 5. Assume that for her current consumption of goods A and B the consumer is experiencing diminishing marginal utility for each good. In order for this consumer to be at her utility maximizing point, she should
A) consume less A and more B .
B) consume more A and less B .
C) consume more A and more B .
D) do nothing - the consumer is already in equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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