A rational consumer chooses what quantities of two products $$\(Y\)$$ and $$\(Z\)$$ to purchase with a given income. $$\(\mathrm{MU}_{\mathrm{Y}}\)$$ and $$\(\mathrm{MU}_{Z}\)$$ are the additions to total utility that would result if the consumer were to purchase an additional unit of each product. $$\(P_{Y}\)$$ and $$\(P_{Z}\)$$ are the current prices of the two products. Which outcome would represent consumer equilibrium?
A.
when \(\mathrm{MU}_{\mathrm{Y}}=\mathrm{MU}_{\mathrm{Z}}\)
B.
\(B\) when \(M U_{Y} \times P_{Y}=M U_{Z} \times P_{Z}\)
C.
when \(M U_{Y} \times P_{Z}=M U_{Z} \times P_{Y}\)
D.
it is not possible to tell from the information available
Exam No：9708_w24_qp_33 Year：2024 Question No：1
Answer:
C
Knowledge points:
7.1.1 definition and calculation of total utility and marginal utility
7.1.3 equi-marginal principle
Solution:
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