WAEC Economics 2023 Objective — Question 13
Question 13 of 50 from the West African Examinations Council (WAEC) Economics 2023 Objective paper, with the correct answer and a full explanation.
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When the marginal utility of 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
When marginal utility exceeds price, a rational consumer is expected to consume more of the product until the marginal utility equals the price of the product.
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