Haley Megan Fosnough-Biersmith goes shopping for shoes and has plenty of money with her. She will keep buying shoes until (LO2) a) her total utility equals the price b) her marginal utility equals the price c) she runs out of money d) the store runs out of shoes

Total utility is the total satisfaction or benefit a consumer receives from consuming a certain number of goods or services.

Marginal utility is the additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

A rational consumer will consume goods or services in such a way that her marginal utility from consuming the goods equals the price. In other words, she will keep consuming the goods as long as the additional satisfaction obtained from the last unit of good is greater than or equal to the price paid for it.

Now let's evaluate each option: a) Total utility equals the price: This scenario doesn't make sense, as total utility is the sum of all utilities obtained from consuming the goods, and it cannot be equal to the price of one unit. b) Marginal utility equals the price: This scenario is correct, as it represents the condition for maximizing utility. Haley will keep buying shoes until the additional utility gained from buying one more pair of shoes equals the price of that pair. c) She runs out of money: This scenario is possible, but it doesn't ensure that Haley maximizes her utility, as she might stop buying shoes even if her marginal utility is still greater than the price. d) The store runs out of shoes: This scenario is also possible in reality, but it also doesn't ensure maximizing utility, as it is an external constraint, not based on the relationship between utility and price.

Based on the analysis, the correct answer is: b) her marginal utility equals the price