Asked by

Cassidy Spruill
on Dec 19, 2024

verifed

Verified

"Consumer equilibrium" refers to the situation when the consumer is getting

A) the highest total utility out of spending a given budget on various goods.
B) the highest marginal utility out of spending a given budget on various goods.
C) equal marginal utility values from each product consumed.
D) equal total utility values from each product consumed.

Consumer Equilibrium

The point at which the quantity of goods purchased by a consumer, given their income and prices of goods, maximizes their utility.

Total Utility

Total utility is the total satisfaction or pleasure a person derives from consuming a particular quantity of goods and services.

Marginal Utility

The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

  • Determine the circumstances that lead to a consumer achieving equilibrium.
verifed

Verified Answer

MA
Misbah AfzalDec 19, 2024
Final Answer:
Get Full Answer