A consumer of a single commodity is in equilibrium when
- his marginal utility is equal to zero
- he can equate his demand with price
-
he equates marginal utility and price
- he can equate his marginal and total utilities
The correct answer is: C
Explanation
A consumer is in equilibrium when the marginal utility equal to the price of the commodity i.e MUx = Px.
Where : X = the commodity
MU = Marginal utility
P = price of the commodity
Therefore, a consumer who consume a single commodity such as apple will be at equilibrium when MUa = Pa