The Idea That Consumers Continue to Adjust Their Purchases Until

question 432

Multiple Choice

The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the

• A) law of increasing costs.
• B) law of diminishing marginal utility.
• C) rule of 72.
• D) consumer optimum.

---

Definitions:

Mental Impairment

A condition that affects a person's thinking, feeling, mood, or ability to relate to others, significantly impacting daily functioning.

Intoxication

A condition resulting from the consumption of alcohol or drugs which impairs mental and physical faculties.

Capacity to Enter

Refers to the legal ability of a party to enter into a binding contract, often requiring that the individual be of a certain age and sound mind.

Legal Consequences

The outcomes or effects that result from the application or violation of laws, which can include penalties, fines, or other legal judgments.