Suppose a consumer is spending his or her entire budget. In order to obtain the most satisfaction from his or her purchases, all goods should:
A) provide the same marginal utility per dollar.
B) be consumed in equal quantities.
C) have identical marginal utilities.
D) give the consumer matching amounts of total utility.

Question

Quizplus · Accepted Answer

If all goods provide the same marginal utility per dollar, the consumer is maximizing satisfaction by allocating their budget in a way that gives them the same benefit for each dollar spent. This means that all goods provide the same level of satisfaction per unit of cost, allowing the consumer to get the most satisfaction possible from their limited budget.

Suppose a Consumer Is Spending His or Her Entire Budget