WAEC Economics 2023 Paper

Concept:A rational consumer reaches equilibrium when the marginal utility of a good equals its price.Explanation:The condition for consumer equilibrium is $MU_x = P_x$.Here, $MU_x > P_x$, meaning the extra satisfaction from one more unit of X is greater than its cost.So, buying and consuming more of X gives the consumer more benefit than the price paid.Therefore, the consumer should increase consumption of X until $MU_x$ falls to equal $P_x$.This behaviour leads to maximum total satisfaction.Answer:The correct option is C. consume more of commodity X.