The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-A utility-maximizing consumer always purchases a good that yields the greatest average utility per dollar of expenditure.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-A utility-maximizing consumer always purchases a good that yields the greatest average utility per dollar of expenditure.

Quizplus · Accepted Answer

A utility-maximizing consumer aims to equalize the marginal utility per dollar spent across all goods, rather than seeking the greatest average utility per dollar of expenditure.

The Below Figure Shows the Various Combinations of the Goods