WAEC - Economics (2018 - No. 13)
if the marginal utility of a 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
Explicaţie
The price a consumer is willing to pay for a good depends on his marginal utility, the marginal utility declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price is equal to the marginal utility