With a given income and prices of goods, Marcus will be in a consumer equilibrium if
A) his marginal utility from all goods is the same.
B) he purchases the same amounts of all goods.
C) he maximizes his total utility.
D) his marginal utility from all goods is at its maximum.

Question

Quizplus · Accepted Answer

Marcus will be in consumer equilibrium when he maximizes his total utility given his income and the prices of goods, which occurs when the ratio of the marginal utility to price is equal across all goods.

With a Given Income and Prices of Goods, Marcus Will