An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?

A) MRSxy is at a maximum.
B) P_X/P_Y = money income.
C) MRSxy = money income.
D) MRSxy = P_X/P_Y.
E) all of the above

Utility Maximizing

The economic principle where individuals or entities make choices to get the highest level of satisfaction from their resources.

Market Basket

A collection of goods and services used to track inflation, consumer spending, or the cost of living in an economy.

MRSxy

The Marginal Rate of Substitution between good x and good y, indicating the rate at which a consumer is willing to give up good y for an additional unit of good x, keeping utility constant.