Consumer attains the equilibrium position at a point when he maximizes his total utility given his income and price of commodities he consumes.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
With the given income and market prices of the goods, the point where a consumer maximizes his satisfaction is known as the consumer's equilibrium point. Any deviation from this point will cause the reduction in consumer's satisfaction.

Suggest Corrections

Similar questions

Q. Consumer is said to be in equilibrium, maximizing his total utility, when

Q. Mr. X consumes two commodities A and B whose prices are Rs. 6 and Rs. 8 per unit respectively. Does the Mr. X strikes his equilibrium when he is getting marginal utility of A equal to 7 and that of B also equal to 7?

Q. The law of equi-marginal utility explains the equilibrium of a consumer when he consumes a single commodity.

A consumer consumes only two goods. For the consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods? Explain.

A consumer consumes only two goods. Why is the consumer in equilibrium when he buys only that combination of the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.

Explain when a consumer, consuming only two commodities X and Y, attains equilibrium under the utility approach.

Q. How does a consumer reach equilibrium position when he is buying only one commodity? Explain with the help of marginal utility schedule.

Join BYJU'S Learning Program

Consumer attains the equilibrium position at a point when he maximizes his total utility given his income and price of commodities he consumes.

The correct option is A TrueWith the given income and market prices of the goods, the point where a consumer maximizes his satisfaction is known as the consumer's equilibrium point. Any deviation from this point will cause the reduction in consumer's satisfaction.

The correct option is A True
With the given income and market prices of the goods, the point where a consumer maximizes his satisfaction is known as the consumer's equilibrium point. Any deviation from this point will cause the reduction in consumer's satisfaction.