An individual consumes only two goods X and Y Which of the f

An individual consumes only two goods, X and Y Which of the following expressions represents the utility maximizing market basket? OA. MRSxy-money income. O c. MRSy is at a maximum. n OD. P/Py money income. OE. all of the above. Click to selact your answer avascriptidot

Solution

Since the consumer equilibrium for two goods will be

MUx/MUy=Px/Py

MRSxy=MUx/MUy

This is also written as

MUx/Px =MUy/Py

Hence option B is the correct answer.