Solved

Suppose That, for a Particular Buyer of Goods a and B

Question 54

Multiple Choice

Suppose that, for a particular buyer of Goods A and B, MUa/Pa = 1.5 and MUb/Pb = 2.5. Based on this information you know:


A) the price of Good A is less than the price of Good B.
B) both goods are overpriced because both MU/P ratios are greater than 1.
C) this buyer would increase total satisfaction by consuming more of Good A and less of Good B.
D) this buyer would increase total satisfaction by consuming less of Good A and more of Good B.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents