The rule of Equimarginal utility is given below also known by many other names. Which of the following is a mismatch

Law of utility and demand
Rule of replacement
Indifference rule
Law of economy in expenditure

The correct answer is A. Law of utility and demand.

The rule of equimarginal utility states that a consumer will maximize their utility by allocating their income in such a way that the marginal utility of each good is equal. This is also known as the law of diminishing marginal utility, which states that the marginal utility of a good decreases as the consumer consumes more of that good.

The law of utility and demand is a different concept. It states that the demand for a good is inversely related to its price. This means that, as the price of a good decreases, consumers will demand more of it, and vice versa.

The rule of replacement is a concept in accounting that states that assets should be replaced when their book value is less than their replacement cost.

The indifference rule is a concept in economics that states that a consumer is indifferent between two bundles of goods if they provide the same level of utility.

The law of economy in expenditure is a concept in economics that states that consumers will try to maximize their utility by spending their money in the most efficient way possible.

Therefore, the only option that is a mismatch is A. Law of utility and demand.

Exit mobile version