Suppose MRSx,y = MUx/MUy = 0.1 (a) If the consumer substitutes 10 units of X for one unit of Y, then the utility remains unchanged (b) Regardless of prices, the consumer will only consume Y (c) If the consumer substitutes 1 unit of Y for 0.1 unit of X, then the utility remains unchanged (d) Regardless of prices, the consumer will only consume X

Suppose MRSx,y = MUx/MUy = 0.1 (a) If the consumer substitutes 10 units of X for one unit of Y, then the utility remains unchanged (b) Regardless of prices, the consumer will only consume Y (c) If the consumer substitutes 1 unit of Y for 0.1 unit of X, then the utility remains unchanged (d) Regardless of prices, the consumer will only consume X

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.2P

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