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Geneva Is Spending Her Entire Income on Goods X and Y

Question 162

Multiple Choice

Geneva is spending her entire income on goods X and Y. Her marginal utility from the last units of X and Y that she consumes is 36. Geneva's utility is only maximized if


A) the prices of X and Y are the same.
B) the price of good X is twice that of good Y.
C) the price of good Y is twice that of good X.
D) We cannot determine whether Geneva is maximizing her utility.

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