Assuming only two goods X and Y,if MUX/PX = MUY/PY,then
A) the consumer is in equilibrium.
B) the consumer cannot be made better off by redirecting his purchases.
C) the consumer is deriving the same marginal utility per dollar for all goods.
D) a and c
E) a, b and c

Question

Quizplus · Accepted Answer

When MUX/PX = MUY/PY, the consumer is in equilibrium, cannot be made better off by redirecting purchases, and is deriving the same marginal utility per dollar for both goods.

Assuming Only Two Goods X and Y,if MUX/PX = MUY/PY,then