WAEC Economics 2010 Theory — Question 9

Model answer

A consumer attains equilibrium when the marginal utility of each good consumed, divided by its price, is equal across all goods purchased (i.e. MUx/Px = MUy/Py = ... = MUz/Pz), and the consumer's total expenditure on all goods purchased equals his money income, so that the marginal utility per unit currency spent is equalized across all goods.