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Questions and Answers
What is the condition for a rational consumer to buy a product?
What is the condition for a rational consumer to buy a product?
- When the cost of the good is more than the marginal utility
- When the cost of the good is equal to the marginal utility (correct)
- When the cost of the good is less than the marginal utility
- When the cost of the good is equal to the total utility
What happens if the marginal utility level degrades?
What happens if the marginal utility level degrades?
- The consumer will buy more until marginal utility is more than the paid price (correct)
- The consumer will stop buying the product
- The consumer will buy less until the price becomes equal to the marginal utility
- The consumer will switch to a different product
What happens if the price paid is less than the marginal utility?
What happens if the price paid is less than the marginal utility?
- The person will only buy the product on sale
- The person will enjoy additional benefits and may buy more products (correct)
- The person will not buy the product
- The person will stop consuming the product
What is the result of the consumer buying less than earlier?
What is the result of the consumer buying less than earlier?
What is the condition for a consumer to be in the state of Consumer Equilibrium?
What is the condition for a consumer to be in the state of Consumer Equilibrium?
In consumer equilibrium, when does a rational consumer buy a product?
In consumer equilibrium, when does a rational consumer buy a product?
What happens if the marginal utility level degrades as the consumer buys more products?
What happens if the marginal utility level degrades as the consumer buys more products?
What happens if a consumer buys less than earlier, leading to an increase in marginal utility?
What happens if a consumer buys less than earlier, leading to an increase in marginal utility?
What will a consumer do if the price paid is less than the marginal utility?
What will a consumer do if the price paid is less than the marginal utility?
What is the main condition for a consumer to be in a state of consumer equilibrium?
What is the main condition for a consumer to be in a state of consumer equilibrium?
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