The Below Table Shows the Average Utility (In Utils) Obtained

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Consumers should allocate their income so that the marginal utility associated with the:

A) first dollar spent is equal for all goods.
B) last dollar spent is equal for all goods.
C) last dollar spent is lower for high-priced items than for low-priced items.
D) first dollar spent is greater for high-priced items than for low-priced items.
E) first dollar spent is less for high-priced items than for low-priced items.

Correct Answer:

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