Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-Total utility is maximized when _____.

A) the marginal utility is maximized
B) the marginal utility is the same for all goods consumed
C) the marginal utility per dollar expenditure is maximized
D) the marginal utility per dollar expenditure is the same for all goods consumed
E) any change in purchases from good A to good B reduces marginal satisfaction