A consumer attains equilibrium by _____.
A)consuming all goods to the point where the marginal utility of each are equal
B)consuming all goods to the point where the total utility of each are equal
C)allocating income such that the total amount spent on each good is equal
D)allocating income such that the marginal utility of the last dollar spent on each good is the same

Question

Quizplus · Accepted Answer

The consumer attains equilibrium by allocating income such that the marginal utility of the last dollar spent on each good is the same. This is because a consumer will continue to purchase goods until the marginal utility of the last dollar spent on each good is equal. When this condition is met, the consumer is said to have achieved equilibrium.

A Consumer Attains Equilibrium by _____