If the marginal utility per dollar is not the same for each good,the consumer could ________ her utility by spending ________ on goods for which the marginal utility per dollar is higher.
A) increase; more
B) increase; less
C) decrease; more
D) minimize; more

Question

Quizplus · Accepted Answer

If the marginal utility per dollar is not the same for each good, the consumer can increase her overall utility by spending more on goods for which the marginal utility per dollar is higher. By doing so, she can maximize her overall satisfaction and achieve a better value for her money.

If the Marginal Utility Per Dollar Is Not the Same