If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical
A)total utilities for each good.
B)marginal utilities for each good.
C)marginal utilities per unit of each good.
D)ratios of marginal utility to price for each good.
E)consumption of each good.

Question

Quizplus · Accepted Answer

When all consumers have maximized their utility, they will be allocating their budgets in such a way that the ratios of marginal utility to price for each good are equal. In other words, each consumer will be buying the goods that give them the most "bang for their buck" in terms of the satisfaction they receive per dollar spent. Therefore, each consumer will have the same ratios of marginal utility to price and will be allocating their consumption in the same way.

If All Consumers in an Economy Have Maximized Their Utility,and