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Question : Consumer equilibrium is the point at which_________

Option 1: MU < Price

Option 2: MU = Price

Option 3: MU > Price

Option 4: None of the above


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: MU = Price


Solution : Where the price of the product equals the marginal utility of that product, the consumer will be most satisfied. The consumer's equilibrium point is this state of maximum satisfaction.
Hence marginal utility will be equal to the price.

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