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WAEC Economics 2017 Question 14

Question 14

Theory of Demand

A rational consumer will purchase a commodity whose price is

  1. A.greater than his marginal utility.
  2. B.less than his marginal utility.
  3. C.equal to his marginal utility.
  4. D.equal to his total utility.
Show the answer and explanation

Answer: C (equal to his marginal utility.)

Explanation

A rational consumer buys up to the point where marginal utility equals price.