Consumer equilibrium exists when
A)marginal utility for all goods is the same.
B)total utility is constant.
C)prices for all goods are the same.
D)total utility for all goods is the same.
E)the MU/P ratio for all goods is the same.

Question

Quizplus · Accepted Answer

Consumer equilibrium occurs when the marginal utility per unit of currency spent (MU/P) is equal across all goods, maximizing total utility given the consumer's budget constraint.

Consumer Equilibrium Exists When