Explain why this equation is correct when the buyer is consuming the combination of goods a and b that maximizes total satisfaction.

$\frac{M U_{a}}{\text { Pnice }_{a}}=\frac{M U_{b}}{\text { Price }_{b}}$

Question

Explain why this equation is correct when the buyer is consuming the combination of goods a and b that maximizes total satisfaction.
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 $\frac{M U_{a}}{\text { Pnice }_{a}}=\frac{M U_{b}}{\text { Price }_{b}}$

Quizplus · Accepted Answer

The Answer of Explain why this equation is correct when the buyer is consuming the combination of goods a and b that maximizes total satisfaction.
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 $\frac{M U_{a}}{\text { Pnice }_{a}}=\frac{M U_{b}}{\text { Price }_{b}}$

Explain Why This Equation Is Correct When the Buyer Is MUa Pnice a=MUb Price b\frac{M U_{a}}{\text { Pnice }_{a}}=\frac{M U_{b}}{\text { Price }_{b}} Pnice a​MUa​​= Price b​MUb​​

Explain Why This Equation Is Correct When the Buyer Is $\frac{M U_{a}}{\text { Pnice }_{a}}=\frac{M U_{b}}{\text { Price }_{b}}$