Question

Which of the following condition is necessary for consumer
equilibrium in case of one commodity​

Answer 1

Answer:

A consumer purchasing a single commodity will be at equilibrium, when he is buying such a quantity of that commodity, which gives him maximum satisfaction. ... Being a rational consumer, he will be at equilibrium when marginal utility is equal to price paid for the commodity

Explanation:

The consumer equilibrium is found by comparing the marginal utility per dollar spent (the ratio of the marginal utility to the price of a good) for goods 1 and 2, subject to the constraint that the consumer does not exceed her budget of $5.When a consumer is purchasing one commodity , he stops buying when its price and utility have been equated. Meaning the marginal utility is equal to the price. At this point, his total utility is the maximum