Assuming only two goods X and Y, if MU_X\P_X = MU_Y\P_Y, then the consumer A)is not in equilibrium. B)cannot be made better off by redirecting his purchases. C)is deriving the same marginal utility on both goods. D)has no incentive to consume either good X or good Y.

Question

Quizplus · Accepted Answer

When MUx/Px = MUy/Py, the consumer is in equilibrium and cannot be made better off by redirecting purchases, as they are maximizing utility given their budget constraint.

Assuming Only Two Goods X and Y, If MUX\PX =

Assuming Only Two Goods X and Y, If MU_X\P_X =