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The Neoclassical Theory of Consumption

Question 16

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The neoclassical theory of consumption


A) argued that it was not generally a fatal disease.
B) asserted that consumers would equate the additional utility per dollar spent, for the last dollar spent on each commodity.
C) asserted that the total numbers of dollars spent on each commodity would be proportionate to the prices of each commodity if the consumer maximized his utility.
D) argued that the utility of a commodity depended upon the price of that commodity.
E) none of the above.

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