For a consumer to be in equilibrium, the marginal utilities of all goods must be equal.
Correct Answer:
Verified
Q213: The marginal utility of a good will
Q214: If income falls, normal goods will experience
Q215: When MUₓ/Pₓ > MUᵧ/Pᵧ, the buyer should
Q216: If the price of a good falls,
Q217: Negatively sloped demand curves can be explained
Q219: Consumers will maximize utility whenever the total
Q220: The substitution effect indicates that the implicit
Q221: Given the consumer's income, a decrease in
Q222: The marginal rate of substitution increases as
Q223: A consumer's total utility is greater at
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents