If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not maximizing utility.

Name: If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not maximizing utility.
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Quizplus · Accepted Answer

when the consumer has maximized utility, the marginal utility per dollar spent on each good purchased will be equal, and the consumer will be on her budget line. In this case, the consumer should consume more a and less b.

If MUa/Pa Is Greater Than MUb/Pb, and the Consumer Is