Multiple Choice
If the ratios of prices and the ratios of marginal utilities are not equal,then Mary,who has extra money to spend,can increase her welfare by
A) not spending at all.
B) changing the prices of the goods.
C) waiting for the prices to fall before spending on any goods.
D) increasing the consumption of all goods.
E) increasing the consumption of goods that yield relatively higher amounts of marginal utility per dollar.
Correct Answer:
Verified
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