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Ron Starts Out in Consumer Equilibrium,consuming Two Goods,X and Y

Question 95

Multiple Choice

Ron starts out in consumer equilibrium,consuming two goods,X and Y.The price of Y rises.Immediately after the rise in price


A) MUX/PX > MUY/PY, and then Ron increases his consumption of Y.
B) MUX/PX > MUY/PY, and then Ron decreases his consumption of Y.
C) MUX/PX < MUY/PY, and then Ron increases his consumption of Y.
D) MUX/PX < MUY/PY, and then Ron decreases his consumption of Y.
E) none of the above.

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