{"id":53559,"date":"2024-04-15T23:55:45","date_gmt":"2024-04-15T23:55:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53559"},"modified":"2024-04-15T23:55:45","modified_gmt":"2024-04-15T23:55:45","slug":"consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/","title":{"rendered":"Consumer is said to be in equilibrium, maximising his total utility, when"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;the marginal utilities of the two goods consumed are equal&#8221; option2=&#8221;the proportions of the marginal utilities and respective prices are equal&#8221; option3=&#8221;the consumer gets full satisfaction from the consumption&#8221; option4=&#8221;the consumer feels satisfied with his expenditure on the various goods&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. the marginal utilities of the two goods consumed are equal.<\/p>\n<p>The consumer is said to be in equilibrium, maximizing his total utility, when the marginal utilities of the two goods consumed are equal. This is because the consumer will get the most satisfaction from his consumption when he is getting the same amount of satisfaction from each good. If the marginal utilities of the two goods are not equal, then the consumer can increase his satisfaction by consuming more of the good with the higher marginal utility and less of the good with the lower marginal utility.<\/p>\n<p>Option B is incorrect because the proportions of the marginal utilities and respective prices are not relevant to the consumer&#8217;s equilibrium. The consumer only cares about the marginal utilities of the goods, not their prices.<\/p>\n<p>Option C is incorrect because the consumer does not need to get full satisfaction from the consumption to be in equilibrium. He only needs to be getting the most satisfaction possible from his consumption.<\/p>\n<p>Option D is incorrect because the consumer&#8217;s feeling of satisfaction with his expenditure on the various goods is not relevant to his equilibrium. The consumer only cares about the marginal utilities of the goods, not his expenditure on them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;the marginal utilities of the two goods consumed are equal&#8221; option2=&#8221;the proportions of the marginal utilities and respective prices are equal&#8221; option3=&#8221;the consumer gets full satisfaction from the consumption&#8221; option4=&#8221;the consumer feels satisfied with his expenditure on the various goods&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53559","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consumer is said to be in equilibrium, maximising his total utility, when<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consumer is said to be in equilibrium, maximising his total utility, when\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;the marginal utilities of the two goods consumed are equal&#8221; option2=&#8221;the proportions of the marginal utilities and respective prices are equal&#8221; option3=&#8221;the consumer gets full satisfaction from the consumption&#8221; option4=&#8221;the consumer feels satisfied with his expenditure on the various goods&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:55:45+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consumer is said to be in equilibrium, maximising his total utility, when","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/","og_locale":"en_US","og_type":"article","og_title":"Consumer is said to be in equilibrium, maximising his total utility, when","og_description":"[amp_mcq option1=&#8221;the marginal utilities of the two goods consumed are equal&#8221; option2=&#8221;the proportions of the marginal utilities and respective prices are equal&#8221; option3=&#8221;the consumer gets full satisfaction from the consumption&#8221; option4=&#8221;the consumer feels satisfied with his expenditure on the various goods&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:55:45+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/","name":"Consumer is said to be in equilibrium, maximising his total utility, when","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:55:45+00:00","dateModified":"2024-04-15T23:55:45+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/consumer-is-said-to-be-in-equilibrium-maximising-his-total-utility-when\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"Consumer is said to be in equilibrium, maximising his total utility, when"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/53559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=53559"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/53559\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=53559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=53559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=53559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}