If the Marginal Utility of Each Good Consumers Buy Does

question 82

Multiple Choice

If the marginal utility of each good consumers buy does not diminish but remains constant, we should witness consumers:

• A) buying no goods at all.
• B) spending all of their income on the good with the highest MU.
• C) buying one of each good.
• D) buying only the least expensive goods.

---

Definitions:

Working Backwards

A problem-solving strategy that involves starting with the conclusion and working backwards to figure out the problem.

Algorithmic Method

The algorithmic method involves solving problems through a clear, step-by-step procedure or set of rules that guarantees a correct solution.

Heuristic Method

A problem-solving strategy that employs practical methods or shortcuts to generate solutions that are "good enough" for solving complex problems.

Mnemonic Device

A tool that helps remember information through patterns, such as sequences of letters, ideas, or associations.