A consumer will consume such that price equals marginal benefit for every good consumed because
A)income is maximized.
B)of the substitution effect.
C)utility is maximized.
D)price is maximized.
E)wealth is maximized.

Question

Quizplus · Accepted Answer

The consumer will consume such that price equals marginal benefit because it is the point where they achieve the highest level of utility. At this point, the consumer is getting the most satisfaction possible from each unit of the good they consume, which means they are maximizing their utility.

A Consumer Will Consume Such That Price Equals Marginal Benefit