Author Question: Economic models simplify reality and help us to better understand important aspects of it. ... (Read 46 times)

gonzo233 · **on:** Jun 30, 2018

Economic models simplify reality and help us to better understand important aspects of it.
Indicate whether the statement is true or false

Question 2

According to utility theory, a consumer is in equilibrium when:
a. total income is spent.
b. marginal utility per dollar spent for a good is maximized.
c. total utility per unit of a good is maximized.
d. total utility per dollar spent is equal for all goods.
e. marginal utility per dollar spent is equal for all goods.