Consumer equilibrium exists when an individual
A)can be made better off by buying more of a normal good and less of an inferior good.
B)is receiving the same total utility from each of the goods he or she purchases.
C)is receiving the same marginal utility from each of the goods he or she purchases.
D)has the same MU/P ratio for each of the goods he or she purchases.
E)none of the above

Question

Quizplus · Accepted Answer

Consumer equilibrium is achieved when the consumer has equalized the marginal utility per dollar spent (MU/P) across all goods, ensuring that they are maximizing their total utility given their budget constraint.

Consumer Equilibrium Exists When an Individual