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In spending all his or her income, the consumer chooses the market basket that maximizes his or
her utility. Which of the following statements will be correct?
1. The marginal utility is the same for each commodity.
2. The marginal utility per dollar spent is the same for each commodity.
3. The marginal utility of each commodity is proportional to its price.
Paper#9209102 | Written in 27-Jul-2016Price : $19