According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.
Marginal Utility
The correct answer is option 3. According to the Marginal Utility theory, a consumer will buy goods and services until the marginal utility per unit of currency spent is the same for all goods, maximizing total utility or satisfaction.
Important Questions from Consumer behaviour
In relation to theory of consumers behaviour, which of the following statements is INCORRECT?
The concept of consumer surplus was propounded by __________.
Goods whose demand varies inversely with income are called ____ goods.
_____ have an income elasticity of demand of between 0 and +1.
Which of the following is true for a normal good when there is a decrease in consumer income?
