Author Question: Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is ... (Read 59 times)

Jkov05 · **on:** Jul 1, 2018

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