As a Consumer Allocates Income Between Good a and Good

question 42

Multiple Choice

As a consumer allocates income between good A and good B, total utility is maximized when:​

• A)marginal utility of A = marginal utility of B
• B)marginal utility of A = marginal utility of B = 0
• C)price of A = price of B
• D)marginal utility of A/price of A = marginal utility of B/price of B = 0
• E)marginal utility of A/price of A = marginal utility of B/price of B

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Definitions:

Check

A written order instructing a bank to pay a specified amount of money from the writer's account to the person or entity in whose name the check has been issued.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.

Note

A promise by the maker of the note to pay the payee of the note.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.