1) When the marginal utility per dollar of good x exceeds the marginal utility p

Question

1) When the marginal utility per dollar of good x exceeds the marginal utility per dollar of good y,

A) the consumer should consume more x.

B) the consumer is consuming too much x.

C) good y must have a negative marginal utility.

D) the consumer is in an optimal situation if the price of x exceeds the price of y

Please explain why the answer is A.

2)

Macroeconomics deals with which of the following?

A)         inflation

B)         prices Tropicana charges for its orange juice

C)         regulation of specific markets such as the auto industry

D)        inflation and prices Tropicana charges for its orange juice

Please provide the answer for this one and explanations thank you!

Explanation / Answer

A) the consumer should consume more x.

because he will be getting more satisfaction for same amount of money.

C)         regulation of specific markets such as the auto industry

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