If the marginal utility per dollar is not the same for each good,the consumer could _____ her utility by spending ______ on goods for which the marginal utility per dollar is higher.
A)decrease,more
B)increase,more
C)maximize,less
D)increase,less

Question

Quizplus · Accepted Answer

If the marginal utility per dollar is not the same, the consumer can increase her overall utility by spending more on goods with higher marginal utility per dollar. This means the consumer is getting more satisfaction per dollar spent on those goods. Therefore, by increasing the amount spent on those goods, the overall utility can be increased.

If the Marginal Utility Per Dollar Is Not the Same