if the marginal utility of a commodity is equal to its price then

a

the consumer is in equilibrium

b

more of the commodity can be consumed

c

total utility is also equal to its price

d

the market is not in equilibrium

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Explanation

Correct Option
c

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Discussions (3)

anj0laa
3 years ago

the answer is A. Consumer equilibrium is when MU=P

ifeeest
2 years ago

The answer is A

Richie_rich24
3 months ago

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.

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