If the marginal utility of the last unit of commodity X at N2 is 16
ECONOMICS
JAMB 2005
If the marginal utility of the last unit of commodity X at N2 is 16 and that of commodity Y at N 4 is 24, the consumer will be at equilibrium when
- A. the price-quantity ratios are equal
- B. equal amounts of X and Y are consumed
- C. less of Y and more of X are consumed
- D. less of X and more of Y are consumed
Correct Answer: A. the price-quantity ratios are equal
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