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Law of Diminishing Marginal Utility

A consumer wi...

Question

A consumer will be in equilibrium if he spends his income with the help of ___________.

A

the marginal propensity to save

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B

the marginal propensity to consume

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C

the law of diminishing marginal utility

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D

the law of equi-marginal utility

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Solution

The correct option is D the law of equi-marginal utility
Equi marginal utility is a law wherein the consumer distributes his income across all goods in order to maximize his utility.

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Law of Diminishing Marginal Utility

Standard XI Economics

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