The Below Table Shows the Average Utility (In Utils) Obtained

question 135

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Consumers should allocate their income so that the marginal utility associated with the:

• A)first dollar spent is equal for all goods.
• B)last dollar spent is equal for all goods.
• C)last dollar spent is lower for high-priced items than for low-priced items.
• D)first dollar spent is greater for high-priced items than for low-priced items.
• E)first dollar spent is less for high-priced items than for low-priced items.