A Consumer Will Consume Such That Price Equals Marginal Benefit

question 30

Multiple Choice

A consumer will consume such that price equals marginal benefit for every good consumed because

• A)income is maximized.
• B)of the substitution effect.
• C)utility is maximized.
• D)price is maximized.
• E)wealth is maximized.

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Definitions:

Relative Velocity

The velocity of an object or observer in relation to another object, observer, or the medium in which they are moving.

Pulse Width Modulation

A method used in electronic control to regulate the amount of power delivered to an electrical device, by effectively chopping up the power supply into controlled intervals.

Fixed Frequency

A characteristic of oscillating systems or signals that maintain a constant frequency over time, typically used in various electronics and communications systems.

Solid State

A semiconductor circuit or device.