A consumer who has a limited budget will maximize utility or satisfaction when the

A) ratios of the marginal utility of each product purchased divided by its price are equal.
B) total utility derived from each product purchased is the same.
C) marginal utility of each product purchased is the same.
D) price of each product purchased is the same.

Marginal Utility

The increase in satisfaction or advantage a buyer experiences from acquiring one more unit of a good or service.

Utility Maximization

A theory in economics asserting that individuals aim to achieve the highest level of satisfaction or utility through their choices, given their resources.

Limited Budget

A financial constraint that limits the amount of money available for spending or investing.