{"id":48609,"date":"2024-04-15T22:43:46","date_gmt":"2024-04-15T22:43:46","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48609"},"modified":"2024-04-15T22:43:46","modified_gmt":"2024-04-15T22:43:46","slug":"the-maximum-satisfaction-to-a-discerning-consumer-meets-at-the-point-where","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-maximum-satisfaction-to-a-discerning-consumer-meets-at-the-point-where\/","title":{"rendered":"The maximum satisfaction to a discerning consumer meets at the point, where"},"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_6a9820f92bfd2\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                                    <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    $$\frac{{M{U_X}}}{{M{U_Y}}} &gt; \frac{{{P_X}}}{{{P_Y}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    $$\frac{{M{U_X}}}{{M{U_Y}}} = \frac{{{P_X}}}{{{P_Y}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    $$\frac{{M{U_X}}}{{M{U_Y}}} \ne \frac{{{P_X}}}{{{P_Y}}}$$                <\/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 $\\frac{{M{U_X}}}{{M{U_Y}}} = \\frac{{{P_X}}}{{{P_Y}}}$.<\/p>\n<p>A discerning consumer is one who is able to compare the marginal utility of different goods and services and choose the combination that gives them the most satisfaction. The marginal utility of a good or service is the additional satisfaction that a consumer gets from consuming one more unit of that good or service. The marginal utility of a good or service will decrease as the consumer consumes more of that good or service.<\/p>\n<p>A consumer will maximize their satisfaction when they are consuming the combination of goods and services that gives them the highest marginal utility per dollar spent. This is the point where the marginal utility of each good or service is equal to its price.<\/p>\n<p>In mathematical terms, this can be expressed as follows:<\/p>\n<p>$$\\frac{{M{U_X}}}{{M{U_Y}}} = \\frac{{{P_X}}}{{{P_Y}}}$$<\/p>\n<p>where $M{U_X}$ is the marginal utility of good $X$, $M{U_Y}$ is the marginal utility of good $Y$, $P_X$ is the price of good $X$, and $P_Y$ is the price of good $Y$.<\/p>\n<p>If the marginal utility of good $X$ is greater than the marginal utility of <div class=\"youtube-subscribe-container\">\r\n        <a 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> good $Y$, then the consumer can increase their satisfaction by consuming more of good $X$ and less of good $Y$. Conversely, if the marginal utility of good $X$ is less than the marginal utility of good $Y$, then the consumer can increase their satisfaction by consuming <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> more of good $Y$ and less of good $X$.<\/p>\n<p>Only when the marginal utility of each good or service is equal to its price will the consumer be maximizing their satisfaction.<\/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>The maximum satisfaction to a discerning consumer meets at the point, where<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-maximum-satisfaction-to-a-discerning-consumer-meets-at-the-point-where\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The maximum satisfaction to a discerning 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