If a consumer has allocated his or her budget and found the combination of goods where all marginal utilities divided by price are equal,what would happen if the consumer were forced to consume some other combination of goods? The consumer
A) will definitely have higher total utility.
B) will definitely have lower total utility.
C) will definitely not experience any change in total utility.
D) might be have higher, lower, or the same total utility, but more information is needed to determine which.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

When a consumer has equalized the marginal utility per dollar spent across all goods, they are maximizing their total utility given their budget. Any deviation from this optimal combination will result in a lower total utility.

If a Consumer Has Allocated His or Her Budget and Found