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WAEC Economics 2020 Question 10

Question 10

Theory of Demand

A consumer is in equilibrium when

  1. A.his market supply is equal to his market demand.
  2. B.he maximizes his satisfaction from spending his income.
  3. C.the market is also in equilibrium.
  4. D.he has consumed all he wants.
Show the answer and explanation

Answer: B (he maximizes his satisfaction from spending his income.)

Explanation

Consumer equilibrium is getting the most satisfaction from a given income.