In consumer equilibrium:
A) the average utility from each dollar spent is the same.
B) total utility cannot be increased by reallocating spending among the goods consumed.
C) total utility obtained from the consumption of each product is at a maximum.
D) the marginal utility from the last unit of each good consumed is the same.

Question

Quizplus · Accepted Answer

In consumer equilibrium, reallocating spending among goods does not increase total utility because the consumer has already optimized their utility given their budget constraint.

In Consumer Equilibrium