Question : If the consumer consumes only one commodity " X ", he will be in equilibrium when:
Option 1: Mux $>$ Px
Option 2: $\operatorname{Mux}=\mathrm{Px}$
Option 3: $\operatorname{Mux}<\mathrm{Px}$
Option 4: None
Answer (1)
24th Jan, 2024
Correct Answer: $\operatorname{Mux}=\mathrm{Px}$
Solution :
The correct answer is b) Mux = Px
The consumer will be in equilibrium when the marginal utility of the commodity (Mux) is equal to the price of the commodity (Px).
In other words, the consumer will maximize their satisfaction or utility from consuming the commodity " X " when the additional satisfaction they derive from consuming one more unit (Mux) is equal to the price they have to pay for that unit (Px).
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