Question

MUXL
Py
Mug
Px true or false?​

Answer 1

$\huge\bold\red{ANSWER WITH EXPLANATION}$

FALSE

If MUx/Px > MUy/Py, then it means that satisfaction of the consumer derives from spending a rupee on Good X greater than the satisfaction derived from spending a rupee on Good Y. The consumer will reallocate his income by substituting Good X for Good y.