Refer to the following figure:

The consumer's income is $800.
-Why doesn't the consumer choose the combination of 30X and 56Y at point A?
A) MRS is less than $P _ { X } / P _ { X }$ .
B) MRS is greater than $P _ { x } / P _ { y }$ .
C) $M U _ { x }$ is greater than $M U _ { y }$ .
D) $M U _ { X } / P _ { X }$ is less than $M U _ { Y } / P _ { Y }$ .

Question

Refer to the following figure:
  
The consumer's income is $800.
-Why doesn't the consumer choose the combination of 30X and 56Y at point A?
A) MRS is less than $P _ { X } / P _ { X }$ . 
B) MRS is greater than $P _ { x } / P _ { y }$ . 
C) $M U _ { x }$ is greater than $M U _ { y }$ . 
D) $M U _ { X } / P _ { X }$ is less than $M U _ { Y } / P _ { Y }$ .

Quizplus · Accepted Answer

The consumer does not choose the combination at point A because the marginal rate of substitution (MRS) is greater than the price ratio $P_x / P_y$, indicating that the consumer values good X more than its relative price compared to good Y.

Refer to the Following Figure: the Consumer's PX/PXP _ { X } / P _ { X }PX​/PX​

Refer to the Following Figure:

the Consumer's $P _ { X } / P _ { X }$