Consumers Should Allocate Their Income So That the Marginal Utility

Multiple Choice

Consumers should allocate their income so that the marginal utility associated with the:

A) first dollar spent is equal for all goods.
B) last dollar spent is equal for all goods.
C) last dollar spent is lower for high-priced items than for lower- priced items.
D) first dollar spent is greater for high-priced items than for lower-priced items.
E) first dollar spent is less for high-priced items than for lower-priced items.