Asked by
Chloe Christian
on Nov 25, 2024Verified
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.
Verified Answer
SH
Learning Objectives
- Understand how changes in prices and income affect consumer's choices and utility maximization.
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