As a general rule, utility-maximizing choices between consumption goods occur where the: rise in income has created the greatest utility. price ratio and marginal utilities ratio of two goods is equal. higher-income households have the greatest satisfaction. constraints on budget expenditures has fallen substantially. next
Solved
Show answers
More tips
- F Food and Cooking Choosing the Best Water Filter: Tips and Recommendations...
- P Photography and Videography Understanding HDR: How It Works and Why You Need It...
- G Goods and services Which TV is better - LCD or Plasma?...
- S Sport How to Learn to Pull Up on Monkey Bars?...
- L Leisure and Entertainment Scrapbooking: What is it and Why is it Becoming More Popular?...
- C Computers and Internet Where did torrents.ru move to?...
- B Business and Finance Understanding Cash Flow: What It Is and How It Works...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
Answers on questions: Business
- E English What is a pattern of organization? an arrangement of ideas and information that shows how those ideas and information are related to each other a way to arrange a school year...
- P Physics Complete the sentence to describe the law of conservation of energy. the law of conservation of energy states that energy cannot be created or , but it can be...
- E English Asap! apex! a boy pushes a 50 kg wheelbarrow with a velocity of 0.5 m/s...
Ответ:
Option (B) is correct.
Explanation:
Correct Option: Price ratio and marginal utilities ratio of two goods is equal.
Utility maximizing choices occur where the ratio of the price of two goods is equal to the ratio of the marginal utilities of two goods.
Utility maximization rule states that individuals wants to allocate their money income in a way, so that the consumer can get same amount of additional marginal utility from spending the last penny on each good.
Therefore,
Ответ:
- carol mars