If the marginal utility of commodity is equal to its price, then

Economics

JAMB 2022

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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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

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If the marginal utility of commodity is equal to its price, then

Correct Answer: Option A

Explanation

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