A consumer of a single commodity is in equilibrium when

  • 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
jamb 2022economics

The correct answer is B. he equates marginal utility and price

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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