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Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of e

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Answer #1

A consumer is said to be in equilibrium when given his preferences, and price of the two goods, he pay out a given money income on the purchase of two goods so that he gets the maximum pleasure.

In other words a consumer is said to be in equilibrium when he enlarges his utility, given his income and the market prices.

Hence it can be said that in consumer equilibrium, the marginal utility from the consumption of the last dollar’s worth of each good is the same.

Hence option third is the correct answer.

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