Question

A state of 'equilibrium' for a consumer means ___________________.

• A. A state of saving rate equal to the growth rate of the economy for the consumer
• B. A state of zero saving for the consumer and full expenditure
• C. The consumer is unable to fulfill needs with the given income
• D. The consumer is able to fulfill needs with a given level of income

Answer 1

Answer: (D)

The consumer is able to fulfill needs with a given level of income

Though this ideal stage is reached only in hypothesis, with the changing time consumers not only demand new goods and services but also new times come with alternatives of it.