Consider an individual with preferences over two goods. This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above

Consider an individual with preferences over two goods. This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 8QFR

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Question

1) Consider an individual with preferences over two goods. This consumer is maximising utility when:

a) They receive the same utility from each good.

b) They spend the same amount of money on each good.

c) The MRS is greater than the ratio of the prices of the two goods.

d) None of the above.

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