Suppose MUx/Px exceeds MUy/Py. To maximize utility the consumer who is spending all her money income should buy:
a) less of X only if its price rises
b) more of Y only if it price rises
c) more of Y and less of X
d) more of X and less of Y

Question

Suppose MUx/Px exceeds MUy/Py. To maximize utility the consumer who is spending all her money income should buy:
a) less of X only if its price rises
b) more of Y only if it price rises
c) more of Y and less of X
d) more of X and less of Y

anonymous · Answer

Are you stuck somewhere?  Do you know what you need to compare as "equals" when considering marginal utility?