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Commerce · Q1113

Economics

Graduate and Post Graduate · Commerce · question 1113

Q1113

If Px = Py, then when the consumer maximises utility,

A.
X must be equal to Y
B.
MU(X) must be equal to MU(Y)
Answer
C.
MU(X) may equal MU(Y), but it is necessarily so
D.
X and Y must be substitutes

Answer: Option B

Solution

Answer: Option B
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