University Admission Economics Exam
Question 1 of 30
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A consumer chooses a bundle of X and Y where \(\frac{MU_X}{P_X}=\frac{MU_Y}{P_Y}\). Immediately after consuming one extra unit of X (with income and all prices unchanged), which statement must be true at that instant?
Select one option.
A
\(MU_X\) must rise because more of X is consumed
B
\(\frac{MU_Y}{P_Y}\) must rise because Y becomes relatively scarce
C
The consumer remains in equilibrium because the equality held before
D
\(\frac{MU_X}{P_X}\) becomes lower than \(\frac{MU_Y}{P_Y}\)
E
Total utility from X must fall immediately
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