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Answer to Question #199470 in Macroeconomics for karabo

Question #199470

An individual consumes only two baskets, x and y. Which of the following expressions represents the utility-maximising market basket?

A.   MRS of x for y is at a maximum.

B.   Px/Py = money income.

C.   MRS of x for y = money income.

D.   MUx/MUy = Px/Py.

E.    All of the above.



1
Expert's answer
2021-05-27T18:59:03-0400

D.) MUx/MUy = Px/Py.


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