Consumer Equilibrium Quiz

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Questions and Answers

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?

  • 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?

  • 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?

<p>Marginal utility will increase until the price becomes equal to the marginal utility (A)</p>
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What is the condition for a consumer to be in the state of Consumer Equilibrium?

<p>Buying products only when the cost of the good is equal to the marginal utility (B)</p>
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In consumer equilibrium, when does a rational consumer buy a product?

<p>When the cost of the good is equal to the marginal utility (B)</p>
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What happens if the marginal utility level degrades as the consumer buys more products?

<p>At some point, the marginal utility will be more than the paid price (D)</p>
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What happens if a consumer buys less than earlier, leading to an increase in marginal utility?

<p>The price becomes equal to the marginal utility (A)</p>
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What will a consumer do if the price paid is less than the marginal utility?

<p>Enjoy additional benefits and buy more products (C)</p>
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What is the main condition for a consumer to be in a state of consumer equilibrium?

<p>Buying products only when the cost equals the marginal utility (B)</p>
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