With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?

Assessment: JAMB UTME - Economics - 1997 Subject: Economics

Question 1 Report

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.
Read lesson note on Theory Of Consumer Behaviour (WAEC)
Read lesson note on The Theory Of Demand (JAMB)
View Answer

Related Questions

1

The movement of curve I to ll suggests
2

From the diagram above, the quantity of output is determined by the point
3

Given that at the beginning of 1973, Nigeria with a birth rate of 3% per annum had a population of 75million. This implied that in that year
4

The organization which provides credit to help countries achieve short-term balance in their balance of payment is the?
5

In the diagram below, the curve which represents firm's short-run averagevariable cost is curve
6

An important feature of a cartel is that?
7

In recent years, Nigeria's balance of payments has continued to register a deficit due to (i) increased government overseas' spending. (ii) increasing prices...
8

The current stage of the economy is depicted in curve I. Point P suggests that the economy is

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning