Solved

The Below Figure Shows the Various Combinations of the Goods

Question 91

True/False

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3    -If a consumer purchases only two goods, X and Y, and if (MU<sub>x</sub> / P<sub>x</sub>) = (MU<sub>y</sub> / P<sub>y</sub>), then the consumer cannot reallocate her expenditures on X and Y to increase her utility unless she has more money to spend.
-If a consumer purchases only two goods, X and Y, and if (MUx / Px) = (MUy / Py), then the consumer cannot reallocate her expenditures on X and Y to increase her utility unless she has more money to spend.

Correct Answer:

verifed

Verified

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

Related Questions