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A Consumer Is Said to Be in Equilibrium in His

Question 1

Multiple Choice

A consumer is said to be in equilibrium in his or her choice between two goods A and B when:


A) the total purchase of good A gives the same satisfaction as the total purchase of good B.
B) the last unit of good A purchased gives the same addition to satisfaction as the last unit of good b purchased.
C) each penny spent on good A gives the same satisfaction as each penny spent on good B.
D) the last penny spent on good A gives the same addition to satisfaction as the last penny spent on good B.
E) the last pennies spent on goods A and B generate no additions to satisfaction.

Correct Answer:

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