Question

To maximize utility a consumer should allocate money income between goods and services consumed so that the:

A) elasticity of demand on all products purchased is the same.
B) marginal utility obtained from the last dollar spent on each product is the same.
C) total utility derived from each product consumed is the same.
D) marginal utility of the last unit of each product consumed is the same.

Answer 1

The answer is B :) marginal utility obtained from the last dollar spent on each product is the same.