Economics · Microeconomics
When MU x /P x >MU y /P y , what should a rational consumer do to maximize utility?
- 1Buy less of both commodities X and Y
- 2Buy more of both commodities X and Y
- 3Buy less of commodity X and more of commodity Y
- 4Buy more of commodity X and less of commodity Y✓
Correct answer
Buy more of commodity X and less of commodity Y
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