Advertisements
Advertisements
Question
The consumer is in equilibrium when Marginal Utility from a Commodity equals ______.
Options
Demand for that Commodity
Supply of that Commodity
Price of the Commodity
All of these
MCQ
Fill in the Blanks
Advertisements
Solution
The consumer is in equilibrium when Marginal Utility from a Commodity equals Price of the Commodity.
Explanation:
In the single-commodity cardinal utility approach, equilibrium occurs when marginal utility in money equals price. Demand and supply are not the equality condition here.
shaalaa.com
Is there an error in this question or solution?
