If a Consumer Has Allocated His or Her Budget and Found

question 152

Multiple Choice

If a consumer has allocated his or her budget and found the combination of goods where all marginal utilities divided by price are equal,what would happen if the consumer were forced to consume some other combination of goods? The consumer

• A) will definitely have higher total utility.
• B) will definitely have lower total utility.
• C) will definitely not experience any change in total utility.
• D) might be have higher, lower, or the same total utility, but more information is needed to determine which.
• E) None of the above answers is correct.

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