Using the utility approach,the consumer is in equilibrium when:
A)the marginal utility associated with consuming the last unit is zero.
B)total utility from each good is at a maximum.
C)the marginal utilities associated with consuming an extra unit of each good are equal.
D)the marginal utility per dollar's worth of each good is equal.

Question

Quizplus · Accepted Answer

The consumer is in equilibrium when the marginal utility per dollar spent on each good is equal, ensuring that the consumer is maximizing total utility given their budget constraint.

Using the Utility Approach,the Consumer Is in Equilibrium When