When a Consumer Spends Income So That the Ratio of Marginal

question 100

Multiple Choice

When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is

• A)maximizing marginal utility
• B)spending too much on all goods
• C)maximizing total utility
• D)beyond the point of diminishing marginal utility
• E)behaving in opposition to the principal of rational behavior

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