If a consumer spends all his income and his marginal utility per dollar is equal for all goods,then
A)marginal utility is maximized.
B)total utility is maximized.
C)he cannot be better off even with more income.
D)the proportion of income spent on each good must be equal.
E)the number of units bought of each good must be equal.

Question

Quizplus · Accepted Answer

When a consumer spends all his income and his marginal utility per dollar is equal for all goods, it means that the consumer has allocated his or her resources in a way that maximizes total utility. This is because the consumer has equalized the marginal utility per dollar across all goods, ensuring that no reallocation of spending could provide more satisfaction.

If a Consumer Spends All His Income and His Marginal