The MU/P Equalization Principle Means Consumers Will Exhaust Their Expenditure

question 230

Multiple Choice

The MU/P equalization principle means consumers will exhaust their expenditure budget so that, in the end, the MU/P ratio is:

• A) zero for each good.
• B) higher for goods the consumer wants the most.
• C) maximized for the goods the consumer wants the most.
• D) higher than TU/P.
• E) the same for each good.

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