There Are Two Conditions Necessary for a Consumer to Maximise

question 217

Multiple Choice

There are two conditions necessary for a consumer to maximise her utility.One is that the marginal utilities per dollar spent on each good and service consumed are equal.What is the other condition?

• A)Total spending on all goods and services must equal the amount available to be spent.
• B)The consumer must be satisfied with the choices she makes.
• C)The total spent on each good and service is the same.
• D)The prices of each good and service consumed must not be too high.

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Definitions:

Flexion

A movement that decreases the angle between two body parts, such as bending a limb at a joint.

Extension

The act of increasing the length, duration, or scope of something beyond the original limit.

Pronation

The inward roll of the foot during normal motion, or the rotational movement of the forearm that turns the palm downward.