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A consumer of a single commodity is in equilibrium when

A consumer of a single commodity is in equilibrium when
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A He can equate his demand with price
  • B He equates marginal utility and price
  • C He can equate his marginal and total utilities
  • D His marginal utility is equal to zero
Correct Answer: Option B
Explanation:
A consumer is in equilibrium when the marginal utility equal to the price of the commodity i.e MUx = Px.
Where : X = the commodity
MU = Marginal utility
P = price of the commodity
Therefore, a consumer who consume a single commodity such as apple will be at equilibrium when MUa = Pa

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