NECO Economics 2025 Objective — Question 36
Question 36 of 60 from the National Examinations Council (NECO) Economics 2025 Objective paper, with the correct answer and a full explanation.
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A rational consumer maximizes utility where:
- A. mux/px = mux/px
- B. mux/px = py/mux
- C. py/mux = mux/px
Explanation
Consumer equilibrium occurs where the marginal utility per dollar spent is equal across all goods (the equi-marginal principle): mux/px = muy/py.
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