EconomicsTheory of consumer behaviourWAEC
A consumer buying several goods is in equilibrium when
Show answer
Answer: C. marginal utility divided by price is the same for every good
Equi-marginal principle: MUa/Pa = MUb/Pb = …, so no switch of spending can raise satisfaction.
An AdmitMe practice question, written for the WAEC syllabus. Not an official past question.