Ron starts out in consumer equilibrium, consuming two goods, X and Y . The price of Y rises. Immediately after the rise in price

Question

Ron starts out in consumer equilibrium, consuming two goods,  X  and  Y . The price of  Y  rises. Immediately after the rise in price

Answer

MU X /P X  > MU Y /P Y , and then Ron decreases his consumption of  Y .

Answer

MU X /P X   > MU Y /P Y , and then Ron increases his consumption of  X and  Y .

Answer

MU X /P X  < MU Y /P Y , and then Ron decreases his consumption of  Y .

Answer

MU X /P X  < MU Y /P Y , and then Ron increases his consumption of  Y .

Answer

MU X /P X  > MU Y /P Y , and then Ron increases his consumption of  Y .

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