Suppose that /

Question

Suppose that  /  <  /  .This implies that:
A)spending a dollar less on Y and spending a dollar more on X increases utility. 
B)spending a dollar less on X,and spending a dollar more on Y increases utility. 
C)X is more expensive than Y. 
D)Y is more expensive than X.

Quizplus · Accepted Answer

The expression can be simplified as follows: (11eab6c4_3e60_d51d_a957_dd9b4a9995d2_TB5232_11 / 11eab6c4_3e60_d51e_a957_eb86e6f7df4c_TB5232_11) < (11eab6c4_3e60_fc2f_a957_4db6f60eca91_TB5232_11 / 11eab6c4_3e61_2340_a957_31753a4c4173_TB5232_11) => (11eab6c4_3e60_d51d_a957_dd9b4a9995d2_TB5232_11 * 11eab6c4_3e61_2340_a957_31753a4c4173_TB5232_11) < (11eab6c4_3e60_fc2f_a957_4db6f60eca91_TB5232_11 * 11eab6c4_3e60_d51e_a957_eb86e6f7df4c_TB5232_11) => (11eab6c4_3e60_d51e_a957_eb86e6f7df4c_TB5232_11 * 11eab6c4_3e61_2340_a957_31753a4c4173_TB5232_11) - (11eab6c4_3e60_d51d_a957_dd9b4a9995d2_TB5232_11 * 11eab6c4_3e60_fc2f_a957_4db6f60eca91_TB5232_11) > 0 This can be interpreted as the cross product of the difference of the prices of X and Y being positive, which means that spending a dollar less on X and spending a dollar more on Y will increase utility. Hence, the answer is B.

Suppose That /