The way in which rational consumers allocate their expenditure on goods and
services is best described by:-
a) The concept of consumer’s surplus
b) The law of diminishing marginal utility
c) The law of equi-marginal utility
d) The law of demand??
Economics
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B
Why sir?
The answer to this will be the law of equi-marginal utility.
We know that the consumer will be in equilibrium if the last rupee spent on each commodity will give the same utility and the concept of equi-marginal utility helps us to do that.