Question on: JAMB Economics - 2022
A consumer of a single commodity is in equilibrium when
A
he can equate his demand with price
B
he equates marginal utility and price
C
he can equate his marginal and total utilities
D
his marginal utility is equal to zero
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Correct Option: B
Option B is the correct answer.
A consumer is in equilibrium when the marginal utility equal to the price of the commodity i.e MUx = Px.
Where : X = the commodity
MU = Marginal utility
P = price of the commodity
Therefore, a consumer who consume a single commodity such as apple will be at equilibrium when MUa = Pa
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