A person is said to be in consumer equilibrium if she
A)equates marginal utilities per dollar spent.
B)has diminishing marginal utility of money.
C)purchases only normal goods.
D)has an incentive to redirect her purchases.

Question

Quizplus · Accepted Answer

Equating marginal utilities per dollar spent across all goods and services is the condition for consumer equilibrium according to the theory of consumer behavior. This ensures that the consumer is maximizing total utility given their budget constraint.

A Person Is Said to Be in Consumer Equilibrium If