states that as the consumer will distribute his money income between the goods in such a ...........

Introductory Microeconomics Consumer Behavious and Demand

__________states that as the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spent on each good is equal.

Law of Equi-Marginal Utility

Law of Diminishing Marginal Utility

Both (1) and (2)

Neither (1) nor (2)

Explanation:

Option (1) is correct.
Explanation: Law of diminishing marginal utility states that as more and more units of a commodity are consumed, marginal utility derived from every additional unit must
decline.
The law of equi-marginal utility states that the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spent on
each good is equal.

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