Categories: Economics WAEC

A consumer is in equilibrium when?

A. his market Supply is equal to his market demand
B. he maximizes his satisfaction from spending his income
C. the market is also in equilibrium
D. he has consumed all he wants

Correct Answer:

Option B – he maximizes his satisfaction from spending his income

Explanation

A consumer is in equilibrium when he derives maximum satisfaction from the goods, given his income and the market prices.

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