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True or False.

1. If MUX/PX > MUY/Py at the best affordable bundle with goods X and Y the individual will not consume any of good Y.

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Answer #1

True.

substitutes are those goods which can replace each other

for example tea and coffee

When the two goods are substitutes to each other then the any good with having more value of ratio of marginal utility and price we consume all the good and other good consumed will be zero

Vice versa is also true

So here in the question, the consumer will consume all of good X but not good Y

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