Question

In a situation when $P_X$ and $P_Y$ are constant, and $MR{S}_{XY}>\frac{P_X}{P_Y}$, the consumer will get greater satisfaction than when $MR{S}_{XY}=\frac{P_X}{P_Y}$. It is true?

Answer 1

No. In a situation when $P_X$ and $P_Y$ are constant, and $MR{S}_{XY}>\frac{P_X}{P_Y}$, the satisfaction level of the consumer will be less than when $MR{S}_{XY}=\frac{P_X}{P_Y}$. Provided, of course, that the consumer does not cross his budgetary constraint. In other words, along with constant $P_X$ and $P_Y$, income of the consumer must also remain constant.