When a consumer is maximizing total utility,he or she cannot increase total utility by reallocating expenditures among different products.

Question

Quizplus · Accepted Answer

When a consumer is maximizing total utility, he or she is already allocating expenditures in the most optimal way to maximize total utility. Therefore, any reallocation of expenditures would result in a decrease in total utility, rather than an increase.

When a Consumer Is Maximizing Total Utility,he or She Cannot