When Marginal Rate of Substitution > Price Ratio of X to Y, the consumer would react by consumption.

decreasing X's

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increasing Y's

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increasing X's

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not changing

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Solution

The correct option is C increasing X's
When MRS > Price Ratio of X to Y, the consumer would react by increasing consumption of X.

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When Marginal Rate of Substitution > Price Ratio of X to Y, the consumer would react by consumption.

The correct option is C increasing X's When MRS > Price Ratio of X to Y, the consumer would react by increasing consumption of X.

The correct option is C increasing X's
When MRS > Price Ratio of X to Y, the consumer would react by increasing consumption of X.