Suppose that a consumer who spends her budget on X and Y is initially at equilibrium. If the price of X increases, then the MU/P of X will

A) decrease and the consumer will respond by buying more Y and less X.
B) decrease and the consumer will respond by buying more X and less Y.
C) increase and the consumer will respond by buying more Y and less X.
D) increase and the consumer will respond by buying more X and less Y.

Equilibrium

A state where supply and demand balance each other, and as a result, prices become stable.

MU/P

Marginal Utility per Price, a concept in economics that represents the additional utility or satisfaction obtained per unit of expenditure.

Consumer Behavior

The examination of the ways in which individuals, groups, and entities choose, purchase, utilize, and discard products, services, ideas, or experiences to fulfill their wants and needs.