{"id":54214,"date":"2024-04-16T00:06:22","date_gmt":"2024-04-16T00:06:22","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54214"},"modified":"2024-04-16T00:06:22","modified_gmt":"2024-04-16T00:06:22","slug":"the-consumer-is-in-equilibrium-maximizing-his-total-utility-when","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-consumer-is-in-equilibrium-maximizing-his-total-utility-when\/","title":{"rendered":"The consumer is in equilibrium, maximizing his total utility, when"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;The marginal utility of the two goods consumed is equal&#8221; option2=&#8221;The proportion of the marginal utility and the respective price is equal&#8221; option3=&#8221;The consumer gets satisfaction from the consumption&#8221; option4=&#8221;The consumer is satisfied with his expenditure on various goods&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. The marginal utility of the two goods consumed is equal.<\/p>\n<p>The consumer is in equilibrium, maximizing his total utility, when the marginal utility of the two goods consumed is equal. This means that the consumer is getting the same amount of satisfaction from each good. If the marginal utility of one good is higher than the marginal utility of the other good, the consumer will want to consume more of the good with the higher marginal utility. This will continue until the marginal utilities of the two goods are equal.<\/p>\n<p>Option B is incorrect because the proportion of the marginal utility and the respective price is not relevant to the consumer&#8217;s equilibrium. The consumer only cares about the marginal utility of the goods, not the price.<\/p>\n<p>Option C is incorrect because the consumer getting satisfaction from the consumption is not enough to ensure that he is in equilibrium. The consumer must also be getting the same amount of satisfaction from each good.<\/p>\n<p>Option D is incorrect because the consumer being satisfied with his expenditure on various goods is not enough to ensure that he is in equilibrium. The consumer must also be getting the same amount of satisfaction from each good.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;The marginal utility of the two goods consumed is equal&#8221; option2=&#8221;The proportion of the marginal utility and the respective price is equal&#8221; option3=&#8221;The consumer gets satisfaction from the consumption&#8221; option4=&#8221;The consumer is satisfied with his expenditure on 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-54214","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>The consumer is in equilibrium, maximizing 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\/the-consumer-is-in-equilibrium-maximizing-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=\"The consumer is in equilibrium, maximizing his total utility, when\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;The marginal utility of the two goods consumed is equal&#8221; option2=&#8221;The proportion of the marginal utility and the respective price is equal&#8221; option3=&#8221;The consumer gets satisfaction from the consumption&#8221; option4=&#8221;The consumer is satisfied with his expenditure on various goods&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-consumer-is-in-equilibrium-maximizing-his-total-utility-when\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:06:22+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":"The consumer is in equilibrium, maximizing 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\/the-consumer-is-in-equilibrium-maximizing-his-total-utility-when\/","og_locale":"en_US","og_type":"article","og_title":"The consumer is in equilibrium, maximizing his total utility, when","og_description":"[amp_mcq option1=&#8221;The marginal utility of the two goods consumed is equal&#8221; 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