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Chloe Christian
on Nov 25, 2024

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If the price of a good increases, it will tend to make the MU to P ratio for the good rise and the good becomes more attractive to the buyer.

MU to P Ratio

An alternative expression for the marginal utility to price ratio, assessing the level of satisfaction obtained per unit of expenditure.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

  • Understand how changes in prices and income affect consumer's choices and utility maximization.
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Sylvia HawkinsNov 28, 2024
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