In Consumer Equilibrium

question 30

Multiple Choice

In consumer equilibrium,

• A)total utility is maximized given the consumer's income and the prices of goods.
• B)marginal utility is maximized given the consumer's income and the prices of goods.
• C)marginal utility per dollar is maximized given the consumer's income and the prices of goods.
• D)the marginal utility from each good is equal.
• E)marginal utility per dollar is zero.

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Definitions:

Accepted

Generally approved or recognized; widely agreed upon.

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not; also can include a broader network of relatives.

Set Point

A theory suggesting that the body regulates its weight and energy balance through internal controls, aiming to maintain a certain level or "set point."

Evolutionary

Pertaining to evolution, the process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.