When supply and demand are in equilibrium, the price of a good is:
A) greater than the marginal utility of the good.
B) equal to the marginal utility of the good.
C) less than the marginal utility of the good.
D) not necessarily any of the above.

Question

Quizplus · Accepted Answer

In equilibrium, the price of a good is determined by the intersection of supply and demand, not directly by marginal utility. Marginal utility can vary among consumers and does not necessarily equal the market price.

When Supply and Demand Are in Equilibrium, the Price of a Good