In deciding what to buy, the consumer will choose the good with the
A)highest marginal utility.
B)lowest price.
C)highest marginal utility-to-price ratio.
D)lowest marginal utility-to-price ratio.

Question

Quizplus · Accepted Answer

The consumer will choose the good with the highest marginal utility-to-price ratio because this indicates the highest satisfaction or utility gained per unit of currency spent, optimizing the value received from their purchase.

In Deciding What to Buy, the Consumer Will Choose the Good