A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:

Related MCQs

• A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and Y is 16 units. The unit price of X is Rs.5. The price of Y is:
• If you know that the marginal utility per rupees spent on product Alpha is less than the marginal utility per rupees spent on product Beta, consumers who spend all their income on these two products can:
• According to ----------- when income increases by a small increment, it leads to increasing marginal utility of income
• If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is
• An inferior good is one for which an increase in income causes a(n)
• If the income elasticity of demand for a good is negative, it must be:
• Which of the following defines marginal utility?
• Which best expresses the law of diminishing marginal utility?
• Which situation is consistent with the law of diminishing marginal utility?
• If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is: