Doubt

[Arshad]

Hey guys..please help me in this problem ???

Suppose that MUx/Px exceeds MUy/Py (MU = marginal utility and p= price). To maximize utility the consumer who is spending all her money income should buy:
a) less of X only if its price rises.
b) more of Y only if its price rises.
c) more of Y and less of X.
d) more of X and less of Y.

according to me answer should be "d".. would that be right as its not mentioned in question that prices are fixed or perfect competition exists!!

[s]

yeah arshad should be d as to lower MUx he must consume more of it and to raise MUy he should consume less of it

[s]

MUx/Px>MUy/Py when budget line is flatter than IC.so to max utility consumer moves to higher IC given price ratio

[Arshad]

thank you "s" :)