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Consider a consumer with preferences over two goods X (represented on the horizontal axis) and Y (repre- sented on the vertical axis). Assume that the
Consider a consumer with preferences over two goods X (represented on the horizontal axis) and Y (repre- sented on the vertical axis). Assume that the consumer's indifference curves are strictly convex to the origin. The consumer's income equals $17, px = $3, and py = $2. At the bundle (x = 3, y = 4), the absolute value of the consumer's MRS (the marginal rate of substitution of good Y for good X) equals 1. Select the correct answer from the options below. O To maximize utility the consumer should buy less of good X and more of good Y. O To maximize utility the consumer should buy more of good X and less of good Y. O The bundle x=3 and y=4 maximizes the consumer's utility
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