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An Equilibrium Market Basket Is One That

Question 1

Multiple Choice

An equilibrium market basket is one that


A) gives the consumer the greatest amount of utility from a given income.
B) does not change even if consumer income changes.
C) does not change even if prices of the commodities purchased change.
D) ensures the consumer a level of satisfaction equal to all other possible consumption alternatives.
E) equalizes the marginal and total utilities for each commodity.

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