Consumer Equilibrium Basics

A point where a consumer allocates their income among different goods and services in any way they prefer

A point where a consumer maximizes their satisfaction while spending a limited amount of income (correct)

A point where a consumer spends all of their income on goods and services

A point where a consumer consumes all available goods and services

The satisfaction gained from consuming the last unit of a good

The satisfaction gained from consuming the first unit of a good

The additional satisfaction gained from consuming one more unit of a good (correct)

The total satisfaction gained from consuming a good

The marginal utility decreases (correct)

The marginal utility increases

The total utility increases

The total utility remains constant

<p>When a consumer allocates their income among different goods and services in a way that the last unit of money spent on each good gives the same marginal utility</p> Signup and view all the answers

<p>To allocate income among goods and services in a way that maximizes satisfaction</p> Signup and view all the answers