The Below Table Shows the Average Utility (In Utils) Obtained

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:

A) consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium.
B) to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased.
C) to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available.
D) to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased.
E) the marginal utilities among luxury goods are always equal among certain high-income earners.