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 (D)</p> Signup and view all the answers

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