Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

At a given level of spending on two goods, X and Y, how should a consumer divide her expenditure between the two goods in order to maximise the satisfaction she obtains?

  • Amarginal utility of X = marginal utility of Y
  • Bmarginal utility of X × price of X = marginal utility of Y
  • Cmarginal utility of X / price of Y = marginal utility of Y / price of X
  • Dmarginal utility of X / price of X = marginal utility of Y / price of Y

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