Solved

Suppose the Marginal Utility of a Unit of Good X

Question 66

True/False

Suppose the marginal utility of a unit of good x = MUx, the marginal utility of a unit of good y = MUy, Px= price of a unit of good x, and Py= price of a unit of a good y. If MUx/Px > MUy/Py, the consumer can increase utility by buying more of good x.

Correct Answer:

verifed

Verified

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

Related Questions

Q29: Opportunity cost is measurable only when prices

Q34: Carvel advertises a football-shaped ice cream cake

Q61: The following diagram shows the demand curve

Q63: When this market is in equilibrium, the

Q65: The following diagram shows the demand curve

Q67: The following table shows the marginal utility

Q68: The following table shows the total utility

Q69: The following graph shows the total utility

Q97: Consumers derive consumer surplus when _<br>A)the monetary

Q161: Marginal utility can be objectively measured and