1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vsevolod [243]
3 years ago
11

Suppose there are only two goods in the world, x and y. Assume the consumer has spent all their money so they are on their budge

t line. Holding everything else constant, if your current allocation gives you a result such that MUx/Px > MUy/Py, your consumption of good y should __ and therefore, the MUy will ___
Business
1 answer:
Paraphin [41]3 years ago
6 0

Answer:

Consumption of good y should decrease

The Marginal Utility should also decrease

Explanation:

Marginal utility of a good is the added satisfaction that a consumer gets from consuming additional units of the good.

Given the two goods x and y, and MUx/Px > MUy/Py.

The Marginal Utility Price Ratio indicates the Utility/Satisfaction derived from the last Dollars spent.

To allocate a budget efficiently, the marginal utility for each item should be equal.

A good has a higher marginal utility-price ratio is the good that the consumer should consume more of.

If the Marginal Utility-Price ratio of good x is greater than that of good y, your consumption of good y should decrease and therefore, the MUy will also decrease.

You might be interested in
Ítems that can be touched used and purchased are considered to be ???
olganol [36]
B because it the right answer there
3 0
3 years ago
A report indicated that the average real wage in manufacturing declined by 2 percent between 1990 and 2000. If the CPI equaled 1
inn [45]

Answer:

W = $27.34

Explanation:

Given data:

Percentage Decline in average income is = 2%

CPI in 1990 1.30

CPI in 2000 is 1.69

Average nominal wage is 2000 is $35

Inflation rate is given as

Inflation rate = % Change in CPI

                    = (1.69 / 1.3) - 1

                    = 1.3 - 1 = 0.3 = 30%

Real wage = Nominal wage / Price level,  hence

Percentage change in real wage = % Change in (nominal wage - inflation rate)

-2% = % Change in nominal wage - 30%

% Change in nominal wage = 28%

let nominal wage in 1990 is w

W\times 1.28% = $35

solving for W = $27.34

8 0
3 years ago
Net exports of goods and services is defined as equal to?
Jet001 [13]
 A. because The United States and other countries import and export goods  for the need of there country.
8 0
3 years ago
A(n) _____ is in control of an agency relationship because he or she defines the tasks and objectives of the relationship./pract
NARA [144]

Answer:

Principal

Explanation:

The principal has the right to abolish the relation or set the objectives of the agent and allocation of task and authority delagated to the agent. This control is given to principal by law to protect his interests.

8 0
3 years ago
Johnson & Coleman has created a new line of premium quality writing desks. The company marketed the product by highlighting
KIM [24]

Answer:

I believe the answer is d

Explanation:

4 0
3 years ago
Other questions:
  • The efficient-market hypothesis:a) has little empirical validity. b) implies that security prices properly reflect information a
    11·1 answer
  • •Determine strategies that can be used to develop effective groups and teams
    5·1 answer
  • How important is it to make a good first impression in a job interview?​
    13·1 answer
  • Spencer wants to work in a field that relates to alternative energy sources. His research suggests these careers (see list below
    10·1 answer
  • Labor demand schedule not sure what that consists of
    11·1 answer
  • Inventory management is largely self-contained in the sense that very little coordination among the sales, purchasing, and produ
    8·2 answers
  • You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year an
    9·1 answer
  • Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year
    15·1 answer
  • Mesquite, Inc. has held-to-maturity debt securities it purchased in 20X1. At December 31, 20X2, the amortized cost basis of the
    8·1 answer
  • When a company uses price as a competitive weapon to drive weaker competitors out of a national market, it is using _____ pricin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!