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For Any Two Goods, a and B, If MUA Divided

Question 22

Multiple Choice

For any two goods, A and B, if MUA divided by PA equals 2.5 and MUB divided by PB equals 4.0, then with given income and prices the consumer should


A) buy more of good A and less of good B.
B) buy more of good B and less of good A.
C) buy all of good B and no A.
D) stop because an equilibrium is achieved.

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