If the results of the study are correct,a typical consumer using the equimarginal rule would be expected to:
A)purchase fewer consultations and more surgeries.
B)purchase the same number of both services.
C)purchase more consultations and fewer surgeries.
D)purchase less of both services.

Question

Quizplus · Accepted Answer

The equimarginal rule states that a consumer should allocate their budget in such a way that the marginal utility per dollar spent is equal for each good or service. In this case, the study found that the marginal utility of consultations was higher than that of surgeries, meaning that consumers would get more satisfaction from spending an additional dollar on consultations rather than surgeries. Therefore, if the consumer follows the equimarginal rule, they would be expected to purchase more consultations and fewer surgeries.

If the Results of the Study Are Correct,a Typical Consumer