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If a Consumer Buys Two Different Goods, the Rational Spending

Question 110

Multiple Choice

If a consumer buys two different goods, the rational spending rule requires that the:


A) total expenditure on the two goods be equal.
B) ratio of total utility to price be equal for the two goods.
C) ratio of average utility to price be equal for the two goods.
D) ratio of marginal utility to price be equal for the two goods.

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