JAMB - Economics (2022 - No. 53)
If the marginal utility of commodity is equal to its price, then
the consumer is in equilibrium
more of the commodity can be consumed
total utility is also equal to its price
the market is not in equilibrium
Explicació
A consumer is in equilibrium when the marginal utility of a commodity is equal to its price if only one commodity is consumed i.e MU x=Px where :
MU = Marginal utility
P= Price of the commodity
x = The commodity
MU = Marginal utility
P= Price of the commodity
x = The commodity