You have just found the consumer's optimal combination of goods using constrained optimization. The marginal utility of income is the:

Question

Quizplus · Accepted Answer

The Lagrange multiplier is used in constrained optimization to find the optimal combination of goods subject to a budget constraint. The marginal utility of income is the extra utility that can be obtained by increasing the budget. The Lagrange multiplier helps to account for this by considering how changes in the budget affect the optimal choice of goods. Therefore, the correct answer is D.

You Have Just Found the Consumer's Optimal Combination of Goods