If the household consumes along the budget constraint where MUx/Px > MUy/Py then assuming normal preferences, we are sure that?

Answer: The household could increase his total utility by consuming more of X and less of Y
Explanation

If the household consumes along the budget constraint where MUx/Px > MUy/Py then assuming normal preferences, we are sure that the household could increase its total utility by consuming more of X and less of Y.

This question appeared in Past Papers (2 times)
Lecturer Economics Past Papers and Syllabus (1 times)
This question appeared in Subjects (1 times)
GENERAL KNOWLEDGE (1 times)

Install this app on your device for quick access right from your home screen.