Which of the following statements is true about individuals and utility?
A. Individuals seek to maximize utility.
B. Individuals seek to maximize their income, not utility.
C. Individuals will either minimize or maximize utility depending on the situation.
D. Individuals rarely try to maximize their utility.
A. Individuals seek to maximize utility.
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Total utility is maximized when _____
a. the marginal utility is maximized b. the marginal utility is the same for all goods consumed c. the marginal utility per dollar expenditure is maximized d. the marginal utility per dollar expenditure is the same for all goods consumed e. any change in purchases from good A to good B reduces marginal satisfaction
For which of the following purchases would the absolute price elasticity of demand be greatest?
A) a luxury sedan B) utilities C) chewing gum D) a smartphone