If the Marginal Utilities from Two Goods Are Not Equal,then

question 27

Multiple Choice

If the marginal utilities from two goods are not equal,then the consumer

• A)cannot be in equilibrium.
• B)should increase consumption of the good with the lower marginal utility.
• C)should decrease consumption of the good with the lower marginal utility.
• D)may possibly be in equilibrium.
• E)will definitely be in equilibrium.

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Definitions:

Deductive Argument

A reasoning method where the outcome is derived from the agreement of several assumptions, which are usually considered accurate.

Logic

The study of principles of reasoning, especially of the structure of propositions and the nature of deductive inference.

Validity

The quality of being logically or factually sound; the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Truth

The quality or state of being in accordance with fact or reality; it is often considered to be the ultimate standard by which reality is judged.