If the marginal utility of the last unit of commodity X at N2 is 16 and that of commodity Y at N 4 is 24; the consumer will be at equilibrium when?

A. the price-quantity ratios are equal
B. equal amounts of X and Y are consumed
C. less of Y and more of X are consumed
D. less of X and more of Y are consumed

Correct Answer:

Option A – the price-quantity ratios are equal