What is the correct answer?


If two households have identical preferences but different incomes then:

A. They must consume the same amounts of all goods

B. The wealthier one will have lower marginal utility for most goods

C. The wealthier one will have higher marginal utility for most goods

D. They will enjoy the same level of utility

Correct Answer :

B. The wealthier one will have lower marginal utility for most goods

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