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Marginal Utility Per Dollar
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If the relationship between budget allocation and consumer satisfaction can be represented as Apples:Utility :: Oranges: ? What is the missing term that best completes the analogy based on the concept of Marginal Utility Per Dollar?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose AnswerChoose the Best Answer

A

Price

B

Satisfaction

C

Budget

D

Utility per Dollar

Understanding the Answer

Let's break down why this is correct

For oranges, the key idea is how much satisfaction you get for every dollar spent. Other options are incorrect because Thinking about the money you pay for each orange is not enough; Contentment alone ignores how much money it costs.

Key Concepts

Marginal Utility Per Dollar
Consumer Decision-Making
Budget Constraint
Topic

Marginal Utility Per Dollar

Difficulty

medium level question

Cognitive Level

understand

Deep Dive: Marginal Utility Per Dollar

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Definition
Definition

Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.

Topic Definition

Marginal Utility Per Dollar is a concept in Economics that helps consumers maximize utility by considering the additional satisfaction gained from spending one more dollar on each good. In this scenario, the consumer chooses the combination of apples and oranges that provides the highest marginal utility per dollar spent within the budget constraint of $7, demonstrating rational consumer decision-making.

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