Oscar consumes only two goods, X and Y. Assume that Oscar is not ...

[Jkov05]

Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true?
 
  A) MRSxy = Px/Py.
  B) MUx/MUy = Px/Py.
  C) Px/Py = money income.
  D) Px/Py = slope of the indifference curve at the optimal choice.
  E) MUx/Px = MUy/Py.

Question 2

Which of the following will NOT cause a rightward shift in the demand curve for beer?
 
  A) A change in the price of beer
  B) A health study indicating positive health benefits of moderate beer consumption
  C) An increase in the price of French wine (a substitute)
  D) A decrease in the price of potato chips (a complement)
  E) none of the above

[tsternbergh47]

Answer to Question 1

C

Answer to Question 2

A

[Jkov05]

Excellent

[shailee]

TYSM