A consumer is in equilibrium when he

spends his whole income on one goodCorrect answerYour answergets the most satisfaction from his income, and has no reason to change his purchasesCorrect answerYour answerbuys the cheapest goodCorrect answerYour answersaves all his incomeCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Equilibrium is a position of rest: satisfaction is as high as the income and prices allow.

Concept: Meaning of consumer's equilibrium
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsEquilibrium with one good

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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A consumer is in equilibrium when he

Explanation