In order to reach consumer equilibrium, which of the following consumption choices must be made?
A) The total utility per dollar spent on Good X must equal the total utility per dollar spent on Good Y.
B) The total utility of Good X must equal the total utility of Good Y.
C) The marginal utility of Good X must equal the marginal utility of Good Y.
D) The marginal utility per dollar spent on Good X must equal the marginal utility per dollar spent on Good Y.

Question

Quizplus · Accepted Answer

Consumer equilibrium is achieved when the marginal utility per dollar spent on each good is equal, ensuring that the consumer maximizes total utility given their budget constraint.

In Order to Reach Consumer Equilibrium, Which of the Following