The combination of Good X and Good Y that will maximize your utility will have which of the following properties? A) $\frac { M U _ { x } } { P _ { x } } = \frac { M U _ { y } } { P _ { y } }$ B) $\frac { M U _ { x } } { P _ { y } } = \frac { M U _ { y } } { P _ { x } }$ C) $\frac { M U _ { y } } { P _ { x } } = \frac { M U _ { x } } { P _ { y } }$ D) $\frac { M U _ { x } } { P _ { x } } \frac { M U _ { y } } { P _ { y } }$

Question

The combination of Good X and Good Y that will maximize your utility will have which of the following properties?
A) $\frac { M U _ { x } } { P _ { x } } = \frac { M U _ { y } } { P _ { y } }$
B) $\frac { M U _ { x } } { P _ { y } } = \frac { M U _ { y } } { P _ { x } }$
C) $\frac { M U _ { y } } { P _ { x } } = \frac { M U _ { x } } { P _ { y } }$
D) $\frac { M U _ { x } } { P _ { x } } < \frac { M U _ { y } } { P _ { y } }$
E) $\frac { M U _ { x } } { P _ { x } } > \frac { M U _ { y } } { P _ { y } }$

Quizplus · Accepted Answer

The correct answer is A because the marginal utility per dollar spent on each good should be equal for the combination of goods that maximizes utility.

The Combination of Good X and Good Y That Will MUxPx=MUyPy\frac { M U _ { x } } { P _ { x } } = \frac { M U _ { y } } { P _ { y } }Px​MUx​​=Py​MUy​​

The Combination of Good X and Good Y That Will $\frac { M U _ { x } } { P _ { x } } = \frac { M U _ { y } } { P _ { y } }$