A consumer will reach consumer equilibrium if they allocate their income such that the marginal utility per dollar spent on Good A is equal to the marginal utility per dollar spent on Good B.

Question

Quizplus · Accepted Answer

This statement is true. Consumer equilibrium is achieved when the ratio of the marginal utility of each good to its price is equal for all goods consumed. This ensures that the consumer maximizes their utility within their budget constraint.

A Consumer Will Reach Consumer Equilibrium If They Allocate Their