Which one of the following is not true in consumer equilibrium?
A)The total utilities of all goods are equal.
B)The consumer is maximizing utility,given her income and the prices of goods and services.
C)The marginal utility per dollar is equal for all goods.
D)Given prices and her income,the consumer finds that any other choice of goods to consume would lower her utility.
E)The consumer will not change her choices unless prices or income change.

Question

Quizplus · Accepted Answer

In consumer equilibrium, the consumer is maximizing utility given her income and the prices of goods and services. The marginal utility per dollar is equal for all goods, and given prices and her income, the consumer finds that any other choice of goods to consume would lower her utility. The consumer will not change her choices unless prices or income change. However, the total utilities of all goods are not necessarily equal in consumer equilibrium, as the consumer may derive more utility from some goods than others.

Which One of the Following Is Not True in Consumer