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WAEC Economics 2022 Objective — Question 14

Question 14 of 50 from the West African Examinations Council (WAEC) 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 he can equate his demand with price

  • A. he equates marginal utility and price
  • B. he can equate his marginal and total utilitiesCorrect
  • C. his marginal utility is equal to zero

Explanation

A single consumer is in equilibrium when marginal utility (MUx) equals price (Px) of the good, i.e. MUx = Px.

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