Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

What is the main principle of marginal utility theory?

  • AAs more is consumed of a normal good, the additional satisfaction gained increases.
  • BConsumers are in equilibrium when the marginal utility gained from good X equals the price of good Y.
  • CConsumers are in equilibrium when the ratio of the marginal utility of goods X and Y are equal to the ratio of their prices.
  • DConsumers are in equilibrium when the total utility gained from good X is the same as gained from good Y.

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