When MU_x/P_x MU_y/P_y, the buyer should decrease the quantity of X purchased.

Name: When MU x /P x > MU y /P y , the buyer should decrease the quantity of X purchased.
Brand: Quizplus
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Question

When MU_x/P_x > MU_y/P_y, the buyer should decrease the quantity of X purchased.

Quizplus · Accepted Answer

The given expression compares the marginal utility per price (MUP) of good X to the marginal utility per price of good Y. If MUP of X is greater than MUP of Y, it means the buyer is getting more utility per unit of currency from X than from Y, suggesting the buyer should actually increase the quantity of X purchased to maximize utility.

When MUx/Px > MUy/Py, the Buyer Should Decrease the Quantity

When MU_x/P_x > MU_y/P_y, the Buyer Should Decrease the Quantity