A consumer is willing to purchase a product up to the point where
A)he spends all of his income.
B)the marginal benefit is equal to the price of the product.
C)the quantity demanded is equal to the quantity supplied.
D)he is indifferent between consuming and saving.

Question

Quizplus · Accepted Answer

A consumer is willing to purchase a product up to the point where the marginal benefit is equal to the price of the product. This is the point where the consumer perceives that the additional benefit derived from consuming the product justifies the cost of acquiring it. If the price increases beyond this point, the marginal benefit will no longer be equal to the price, and the consumer will choose to buy a different product or reduce their consumption.

A Consumer Is Willing to Purchase a Product Up to the Point