{"id":50578,"date":"2024-04-15T23:12:20","date_gmt":"2024-04-15T23:12:20","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50578"},"modified":"2024-04-15T23:12:20","modified_gmt":"2024-04-15T23:12:20","slug":"the-consumer-is-10-equilibrium-when-he-plans-his-expenditure-on-x-y-and-z-commodities-in-such-a-way-that-he-ultimately-attains","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-consumer-is-10-equilibrium-when-he-plans-his-expenditure-on-x-y-and-z-commodities-in-such-a-way-that-he-ultimately-attains\/","title":{"rendered":"The consumer is 10 equilibrium when he plans his expenditure on x, y, and z commodities in such a way that he ultimately attains"},"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_6a9818a844a4a\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    MUX = MUY = M2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    MD1\/P1 = MU2\/P2 = MU3\/P3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    MUX\/PX = MUY\/PY = MUZ\/PZ = MUM                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/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. MUX\/PX = MUY\/PY = MUZ\/PZ = MUM.<\/p>\n<p>The consumer is in equilibrium when he plans his expenditure on x, y, and z commodities in such a way that he ultimately attains the same marginal utility per unit of money spent on each commodity. This is known as the law of diminishing marginal utility.<\/p>\n<p>The law of diminishing marginal utility states that as a consumer consumes more of a good, the marginal utility of that good decreases. This means that the consumer will get less satisfaction from each additional unit of the good that he consumes.<\/p>\n<p>In order to maximize his satisfaction, the consumer will allocate his income in such a way that he gets the same marginal utility from each additional unit of money that he spends on each good. This is achieved when the marginal utility per unit of money spent on each good is equal.<\/p>\n<p>Mathematically, this can be expressed as:<\/p>\n<p>MUX\/PX = MUY\/PY = MUZ\/PZ = MUM<\/p>\n<p>where:<\/p>\n<ul>\n<li>MUX = marginal utility of good X<\/li>\n<li>MUY = marginal utility of good Y<\/li>\n<li>MUZ = marginal utility of good Z<\/li>\n<li>PX = price of good X<\/li>\n<li>PY = price of good Y<\/li>\n<li>PZ = price of good Z<\/li>\n<li>MUM = marginal utility of money<\/li>\n<\/ul>\n<p>The law of diminishing marginal utility is a fundamental principle of economics. It <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      <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>       <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> helps to explain why consumers make the choices that they do. It also helps to explain why prices tend to rise as demand for a good increases.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel 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 consumer is 10 equilibrium when he plans his expenditure on x, y, and z commodities in such a way that he ultimately attains<\/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-consumer-is-10-equilibrium-when-he-plans-his-expenditure-on-x-y-and-z-commodities-in-such-a-way-that-he-ultimately-attains\/\" 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