WAEC Economics 2018 Objective — Question 14
Question 14 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.
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If the marginal utility of a commodity is equal to its price, then the consumer is in equilibrium if
- A. more of the commodity can be consumedCorrect
- B. total utility is also equal to its price
- C. the market is not in equilibrium
- D. -
Explanation
Consumer equilibrium (utility-maximising condition) is reached when marginal utility of a commodity equals its price (MU=P).
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