Multiple Choice
To be in equilibrium (i.e., to maximize satisfaction) , the consumer must:
A) purchase no inferior goods.
B) equalize the marginal utilities of the last unit purchased of every commodity.
C) be sure that the prices of all commodities purchased are proportional to their total utilities.
D) be sure that the price of each good is equal to the marginal utility of money.
E) allocate income so that the last penny spent on any good generates the same increment of utility as the last penny spent on any other good.
Correct Answer:

Verified
Correct Answer:
Verified
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