As a Consumer Allocates Income Between Good a and Good

question 23

Multiple Choice

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

• A)the marginal utility of A = the marginal utility of B
• B)the marginal utility of A = the marginal utility of B = 0
• C)the 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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