A consumer has the indifference map shown below.The market prices of X and Y are $20 and $50,respectively.The consumer has $500 to spend on goods X and Y.For the utility-maximizing bundle,the marginal rate of substitution is ____________________ the slope of the budget line (in absolute value),and the ratio MU/P for good X is ____________ the ratio MU/P for good Y.
A)greater than; greater than
B)greater than; less than
C)less than; greater than
D)less than; less than
E)equal to; equal to

Question

A consumer has the indifference map shown below.The market prices of X and Y are $20 and $50,respectively.The consumer has $500 to spend on goods X and Y.For the utility-maximizing bundle,the marginal rate of substitution is ____________________ the slope of the budget line (in absolute value),and the ratio MU/P for good X is ____________ the ratio MU/P for good Y. 
A)greater than; greater than 
B)greater than; less than 
C)less than; greater than 
D)less than; less than 
E)equal to; equal to

Quizplus · Accepted Answer

The Answer of A consumer has the indifference map shown below.The market prices of X and Y are $20 and $50,respectively.The consumer has $500 to spend on goods X and Y.For the utility-maximizing bundle,the marginal rate of substitution is ____________________ the slope of the budget line (in absolute value),and the ratio MU/P for good X is ____________ the ratio MU/P for good Y. 
A)greater than; greater than 
B)greater than; less than 
C)less than; greater than 
D)less than; less than 
E)equal to; equal to

A Consumer Has the Indifference Map Shown Below