Multiple Choice
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. A utility-maximizing consumer who purchases two goods, x and y, allocates her budget in such a way that _____.
A) MUx = MUy
B) TUx = TUy
C) MUx/Py = MUy/Px
D) TUx/Py = TUy/Px
E) MUx/Px = MUy/Py
Correct Answer:
Verified
Correct Answer:
Verified
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