the consumer is in equilibrium
more of the commodity can be consumed
total utility is also equal to its price
the market is not in equilibrium
Explanation
Video Explanation
No video available
Post your Contribution
Discussions (3)

The correct answer is A. the consumer is in equilibrium
Explanation: In consumer theory, a consumer is said to be in equilibrium when:
This means the satisfaction gained from consuming an extra unit equals the cost of that unit.
At this point:
The consumer has no incentive to buy more or less of the commodity.
Utility is being maximized given the budget.
So:
If MU = Price, the consumer is at equilibrium 
Other options:
B → Not necessarily true 
C → Total utility is not equal to price 
D → Opposite of the correct condition 
Therefore, the correct answer is A. the consumer is in equilibrium.

