GCE Economics 2022 Objective — Question 14
Question 14 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.
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A consumer of a single commodity is in equilibrium when
- A. he can equate his demand with price
- B. he equates his marginal utility and priceCorrect
- C. he can equate his marginal and total utility
- D. his marginal utility is equal to zero
Explanation
A consumer attains equilibrium at the point where marginal utility equals price paid (MU = P); this is also known as utility maximization.
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