10 Questions
What is the condition for a rational consumer to buy a product?
When the cost of the good is equal to the marginal utility
What happens if the marginal utility level degrades?
The consumer will buy more until marginal utility is more than the paid price
What happens if the price paid is less than the marginal utility?
The person will enjoy additional benefits and may buy more products
What is the result of the consumer buying less than earlier?
Marginal utility will increase until the price becomes equal to the marginal utility
What is the condition for a consumer to be in the state of Consumer Equilibrium?
Buying products only when the cost of the good is equal to the marginal utility
In consumer equilibrium, when does a rational consumer buy a product?
When the cost of the good is equal to the marginal utility
What happens if the marginal utility level degrades as the consumer buys more products?
At some point, the marginal utility will be more than the paid price
What happens if a consumer buys less than earlier, leading to an increase in marginal utility?
The price becomes equal to the marginal utility
What will a consumer do if the price paid is less than the marginal utility?
Enjoy additional benefits and buy more products
What is the main condition for a consumer to be in a state of consumer equilibrium?
Buying products only when the cost equals the marginal utility
Test your understanding of consumer equilibrium with this quiz. Explore the concept of rational consumer behavior and the conditions necessary for achieving consumer equilibrium.
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