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Question
For any two goods, X and Y, if MUX divided by PX equals 2.5 and MUY divided by PY equals 4.0, then with given income and prices the consumer should
A) buy more of good X and less of good Y.
B) buy more of good Y and less of good X.
C) buy all of good Y and no X.
D) stop because an equilibrium is achieved.
Answer
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