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If the marginal utility of commodity is equal to its price, then

If the marginal utility of commodity is equal to its price, then
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A The consumer is in equilibrium
  • B More of the commodity can be consumed
  • C Total utility is also equal to its price
  • D The market is not in equilibrium
Correct Answer: Option A
Explanation:
A consumer is in equilibrium when the marginal utility of a commodity is equal to its price if only one commodity is consumed i.e MU x=Px where :
MU = Marginal utility
P= Price of the commodity
x = The commodity

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