In consumer equilibrium,
A)total utility is maximized given the consumer's income and the prices of goods.
B)marginal utility is maximized given the consumer's income and the prices of goods.
C)marginal utility per dollar is maximized given the consumer's income and the prices of goods.
D)the marginal utility from each good is equal.
E)marginal utility per dollar is zero.

Question

Quizplus · Accepted Answer

In consumer equilibrium, total utility is maximized given the consumer's income and the prices of goods, as consumers allocate their budget in a way that maximizes their satisfaction.

In Consumer Equilibrium