Consumer Equilibrium Exists When

question 179

Multiple Choice

Consumer equilibrium exists when

• A)marginal utility for all goods is the same.
• B)total utility is constant.
• C)prices for all goods are the same.
• D)total utility for all goods is the same.
• E)the MU/P ratio for all goods is the same.

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Definitions:

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on underlying characteristics and not market price.

Forecasted Cash Flows

Projected movements of cash in and out of a business, used for budgeting and financial planning.

Fixed Maturity

The predetermined date on which an investment, often a bond or other fixed-income security, matures and the principal is supposed to be repaid.

Future Cash Flows

Projected incoming and outgoing cash amounts expected to be received or paid over future periods.