A consumer is in equilibrium if he or she derives the same
A)total utility from each good consumed.
B)total utility per dollar spent on each good consumed.
C)marginal utility from each good consumed.
D)marginal utility per dollar spent on each good consumed.

Question

Quizplus · Accepted Answer

A consumer is in equilibrium when the marginal utility per dollar spent on each good consumed is equal. This ensures that the consumer is allocating their budget in a way that maximizes their total utility given their budget constraint.

A Consumer Is in Equilibrium If He or She Derives