A consumer is in equilibrium when
A) total utility can be increased only by reallocating his or her money income.
B) the marginal utility for each commodity consumed is equal.
C) all of his or her income has been spent on goods and services.
D) any other allocation of his or her income among the commodities consumed leads only to a reduction in total utility.
E) the total utility received from all commodities is the same.

Question

Quizplus · Accepted Answer

A consumer is in equilibrium when reallocating income among commodities would not increase total utility, meaning any other allocation would reduce total utility.

A Consumer Is in Equilibrium When