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:
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