JAMB Economics 2022 Paper

Concept:Consumer equilibrium is achieved when the additional satisfaction from consuming the last unit equals the price paid for it.Explanation:For a single commodity, a consumer buys more as long as marginal utility ($MU$) is greater than price ($P$).Equilibrium is reached when:$$MU_x = P_x$$Where $MU_x$ is the marginal utility of commodity $x$ and $P_x$ is its price.At this point, the consumer has maximised total utility and has no desire to buy more or less.Since the condition is satisfied, the consumer is in equilibrium.Answer: A. the consumer is in equilibrium