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Utility & Consumer's Equilibrium · Question 46 of 73

Question 46

MediumOriginal question

A consumer buys a good where its marginal utility in rupees is ₹12 and its price is ₹10. He should

Options for question 46

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. The last unit is worth ₹12 to him but costs only ₹10, so another unit is still a gain.

  2. He goes on until MU falls to ₹10, the price.

Concept
MU above price
Typical time
70 s
Your time
—
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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