GCE Economics 2023 Objective — Question 13
Question 13 of 50 from the General Certificate of Education (GCE) Economics 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
When the marginal utility from the consumption of commodity X (MUx) is greater than the price of commodity X (Px), a rational consumer should A. Consume more of commodity X B. reduce consumption of commodity X C. consume the same quantity of commodity X D. strive to remain in disequilibrium
- A. Consume more of commodity XCorrect
- B. reduce consumption of commodity X
- C. consume the same quantity of commodity X
- D. strive to remain in disequilibrium
Explanation
A rational consumer keeps consuming more of a good as long as marginal utility exceeds price, continuing until MU = P (utility maximisation).
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.