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The Law of Equi-marginal Utility is Based on the Law of _________. - Economics

MCQ

 The law of equi-marginal utility is based on the law of _________. 

Options

  • (a) demand 

  • (b) diminishing marginal utility 

  • (c) supply 

  • (d) consumption 

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Solution

 The law of equi-marginal is based on the law of diminishing marginal utility.
Explanation:
The law of equi-marginal utility is an extension of the law of diminishing marginal utility, It explains how equilibrium is achieved when a consumer spends his income on number of goods to derive maximum satisfaction.

Concept: Law of Equi-marginal Utility
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