The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A) law of increasing costs.
B) law of diminishing marginal utility.
C) rule of 72.
D) consumer optimum.

Question

Quizplus · Accepted Answer

The idea described in the question is known as the consumer optimum, which is the point at which a consumer is maximizing their utility based on their limited income and the prices of goods and services. The other options (A, B, C) do not accurately describe this concept.

The Idea That Consumers Continue to Adjust Their Purchases Until