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A utility maximizing consumer buys so as to make _ _ _ _ _ _ _ _ for all pairs of goods. ( MUx

A utilitymaximizing consumer buys so as to make ________ for all pairs of goods.

(MUx is the marginal utility of good x and Px is the price of good x; MUy is the marginal utility of good y and Py is the price of good y)

Question 5Answer

a.

MUx/Px = MUy/Py

b.

TUx/Px = TUy/Py

c.

MUx = MUy

d.

Px(MUx) = Py(MUy)

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