Question

In consumer equilibrium, a consumer ______.

Options

• Maximises satisfaction by equalising marginal utility per rupee for all goods

• Buys only one type of product

• Consumes goods only at low prices

• Tries to get the cheapest goods

Answer 1

Maximises satisfaction by equalising marginal utility per rupee for all goods

Explanation:

Consumer equilibrium happens when the consumer balances spending so each rupee spent gives equal satisfaction everywhere.