If a consumer is maximizing his/her utility for a given income, the:
A) marginal utility for every good purchased would be the same.
B) marginal utility per dollar spent for all goods would be the same.
C) marginal utility per dollar for all goods would be at a maximum.
D) total expenditure on each good would be the same.

Question

Quizplus · Accepted Answer

When a consumer is maximizing their utility for a given income, they are spending their money in a way that maximizes the satisfaction they receive from each dollar spent. This means that they will allocate their spending so that the marginal utility per dollar spent for all goods is equal. Any other allocation of spending would result in either less overall utility or less utility per dollar spent.

If a Consumer Is Maximizing His/her Utility for a Given