MCQ
Consuming two goods, a consumer attains equilibrium when:
  • A
    $\frac{ MU _1}{ P _1}>\frac{ MU _2}{ P _2}$
  • B
    $\frac{ MU _2}{ P _2}>\frac{ MU _1}{ P _1}$
  • $\frac{ MU _1}{ P _1}=\frac{ MU _2}{ P _2}$
  • D
    $\frac{ TU _1}{ P _1}>\frac{ TU _2}{ P _2}$

Answer

Correct option: C.
$\frac{ MU _1}{ P _1}=\frac{ MU _2}{ P _2}$
C

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