Assertion (A): The law of equi-marginal utility is also called the law of maximum satisfaction.
Reason (R): Spending so that MU per rupee is equal across goods gives the most total satisfaction from a given income.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
R states why the law earns that name, so R explains A.

Concept: Law of maximum satisfaction
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium with two goods

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Assertion (A): The law of equi-marginal utility is also called the law of maximum satisfaction.Reason (R): Spending so that MU per rupee is equal across goods gives the most total satisfaction from a given income.

Explanation

Assertion (A): The law of equi-marginal utility is also called the law of maximum satisfaction.
Reason (R): Spending so that MU per rupee is equal across goods gives the most total satisfaction from a given income.