A. the consumer is in equilibrium
B. more of the commodity can be consumed
C. total utility is also equal to its price
D. the market is not in equilibrium

Correct Answer:

Option A – the consumer is in equilibrium


A consumer is in equilibrium when the marginal utility of a commodity is equal to its price if only one commodity is consumed i.e MU x=Px where :
MU = Marginal utility
P= Price of the commodity
x = The commodity

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