3. Apoorva spends her entire income on ("good") goods X and Y, which she views as neither perfect complements nor perfect substitutes (i.e., she has "standard-looking" indifference curves). Which of the following statements is always a incorrect characterization of Apoorva's optimal consumption bundle? a) MUx/MUY Px/PY b) Apoorva has no income left over. c) Apoorva attains the highest utility level possible, given her budget constraint. d) Apoorva consumes positive amounts of both X and Y. e) None of the above.
3. Apoorva spends her entire income on ("good") goods X and Y, which she views as neither perfect complements nor perfect substitutes (i.e., she has "standard-looking" indifference curves). Which of the following statements is always a incorrect characterization of Apoorva's optimal consumption bundle? a) MUx/MUY Px/PY b) Apoorva has no income left over. c) Apoorva attains the highest utility level possible, given her budget constraint. d) Apoorva consumes positive amounts of both X and Y. e) None of the above.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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Question
![3. Apoorva spends her entire income on ("good") goods X and Y, which she views as neither perfect
complements nor perfect substitutes (i.e., she has "standard-looking" indifference curves). Which
of the following statements is always a incorrect characterization of Apoorva's optimal
consumption bundle?
a) MUx/MUY = Px/PY
b) Apoorva has no income left over.
c) Apoorva attains the highest utility level possible, given her budget constraint.
d) Apoorva consumes positive amounts of both X and Y.
e) None of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe1fd613-6ed4-4c3f-b422-016682c00c20%2F2aa9c5b0-032d-4ac7-9efe-ea2b4ccbcfcd%2F42jtkfj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Apoorva spends her entire income on ("good") goods X and Y, which she views as neither perfect
complements nor perfect substitutes (i.e., she has "standard-looking" indifference curves). Which
of the following statements is always a incorrect characterization of Apoorva's optimal
consumption bundle?
a) MUx/MUY = Px/PY
b) Apoorva has no income left over.
c) Apoorva attains the highest utility level possible, given her budget constraint.
d) Apoorva consumes positive amounts of both X and Y.
e) None of the above.
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