-
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
Correct Answer: Option A
Explanation
A consumer is in equilibrium when the marginal utility of a commodity is equal to its price if only one commodity is consumed i.e MU x=Px where :
MU = Marginal utility
P= Price of the commodity
x = The commodity
Report an Error
Ask A Question
Download App
Quick Questions
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}