Suppose that the MU/P ratio for good X is the same as for good Y: 12 utils per dollar. If the price of good X then rises to $2 from $1, a consumer who seeks to maintain consumer equilibrium will buy more of good __________ until the marginal utility of that good falls to __________ utils.
A) Y; 12
B) Y; 24
C) X; 12
D) Y; there is not enough information to answer this part of the question
E) X; there is not enough information to answer this part of the question
Correct Answer:
Verified
Q129: No matter what the price of a
Q130: Exhibit 20-4 Q131: The marginal utility curve for units 6 Q132: Exhibit 20-4 Q133: Suppose people are in consumer equilibrium buying Q135: There are two goods, X and Y, Q136: A person is in consumer equilibrium, and Q137: Exhibit 20-5 Q138: If the marginal utility of X is Q139: Exhibit 20-4 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents