{"id":43604,"date":"2024-04-15T21:31:48","date_gmt":"2024-04-15T21:31:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43604"},"modified":"2024-04-15T21:31:48","modified_gmt":"2024-04-15T21:31:48","slug":"if-a-consumer-with-a-given-income-and-price-consumes-three-commodities-x-y-and-z-his-satisfaction-will-be-maximum-when","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-a-consumer-with-a-given-income-and-price-consumes-three-commodities-x-y-and-z-his-satisfaction-will-be-maximum-when\/","title":{"rendered":"If a consumer, with a given income and price consumes three commodities x, y and z. His satisfaction will be maximum when:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a978131eca7f\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    $$\frac{{MUx}}{{MUy}} = \frac{{MUy}}{{MUz}} = \frac{{MUz}}{{MUx}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    $$\frac{{MUx}}{{MUy}} = \frac{{Px}}{{Py}} = \frac{{MUx}}{{Pz}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    $$\frac{{MUx}}{{Px}} = \frac{{MUy}}{{Py}} = \frac{{MUz}}{{Pz}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    $$\frac{{MUx}}{{Py}} = \frac{{MUy}}{{Pz}} = \frac{{MUz}}{{Px}}$$                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is C.<\/p>\n<p>The law of diminishing marginal utility states that as a consumer consumes more of a good, the marginal utility (MU) <div class=\"youtube-subscribe-container\">\r\n        <a <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> of that good decreases. This means that each additional unit of the good provides less satisfaction than the previous unit.<\/p>\n<p>The consumer&#8217;s satisfaction is maximized when the marginal utility of each good is equal to the price of that good. This is because the consumer is getting the same amount of satisfaction from each good, and is not wasting any money on goods that provide less satisfaction than their price.<\/p>\n<p>In mathematical terms, this can be expressed as:<\/p>\n<p>$$\\frac{{MUx}}{{Px}} = \\frac{{MUy}}{{Py}} = \\frac{{MUz}}{{Pz}}$$<\/p>\n<p>where $MUx$ is the marginal utility of good $x$, $Px$ is the price of good $x$, $MUy$ is the marginal utility of good $y$, $Py$ is the price of good $y$, and $MUz$ is the marginal utility of good $z$.<\/p>\n<p>Option A is incorrect because it does not take into account the prices of the goods. Option B is incorrect because it does not take into account the marginal utilities of the goods. Option D is incorrect because it does not take into account the prices of the goods.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If a consumer, with a given income and price consumes three commodities x, y and z. 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