Suppose a consumer maximizes her utility subject to her budget by choosing a consumption bundle where the ratio of her marginal utilities of beef and pork, MU_B /MU_P, is greater than the ratio of the prices of beef and pork, p_B/p_P, then she must
be consuming beef but no pork.
0%
believe that beef is a “bad.”
0%
be consuming pork but no beef.
0%
be consuming both beef and pork.
0%

Question

Suppose a consumer maximizes her utility subject to her budget by choosing a consumption bundle where the ratio of her marginal utilities of beef and pork, MU_B /MU_P, is greater than the ratio of the prices of beef and pork, p_B/p_P, then she must

be consuming beef but no pork.

0%

believe that beef is a “bad.”

0%

be consuming pork but no beef.

0%

be consuming both beef and pork.

0%

Answer

be consuming beef but no pork.

Answer

believe that beef is a “bad.”

Answer

be consuming pork but no beef.

Answer

be consuming both beef and pork.

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Suppose a consumer maximizes her utility subject to her budget by choosing a co...

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