With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?
Answer Details
A consumer maximizes satisfaction from the consumption of goods and services when the marginal utility derived per naira spent is the same for all the goods and services. This is because consumers have limited income and want to get the most satisfaction from their spending. To achieve this, the consumer allocates their income in such a way that the marginal utility (additional satisfaction) per naira spent on each good or service is the same. When this condition is satisfied, the consumer has achieved the maximum level of satisfaction possible given their income and the prices of goods and services.