A Consumer Spends His Limited Income on Three Goods Such

Multiple Choice

A consumer spends his limited income on three goods such that the MU_X = 4, MU_Y = 4, MU_Z = 4; and P_X = 4, P_Y = 2, P_Z = 1. Which of the following statements is (are) TRUE?
I. Because the marginal utilities of all three goods are equal, the consumer is maximizing utility.
II. The consumer receives the most bang for the buck from good Z.
III. The marginal utility per dollar spent is not equal across all three goods, so the consumer is not maximizing utility.

A) I
B) II
C) III
D) II and III