If the consumer consume only one commodity lsquo X rsquo he will be in equilibrium when Here MUx Mar...........

If the consumer consume only one commodity ‘X’ he will be in equilibrium when :

[Here, MUx= Marginal utility of the good X (in terms of money); Px= Price of good –X]

MUx <Px

MUx= Px

MUx >Px

None of these

- Option 1: MUx < Px

- This means that the marginal utility of good X is less than its price.

- The consumer perceives less value in the good than what they are paying.

- They will not be in equilibrium and will reduce consumption.

- Option 2: MUx = Px

- This is where the marginal utility equals the price.

- The consumer values the good as much as they are paying for it.

- They are in equilibrium because they derive no net loss or gain from consuming an extra unit.

- Option 3: MUx > Px

- The marginal utility is greater than the price.

- The consumer gains more satisfaction compared to what they pay.

- They are likely to increase consumption until MUx = Px.

- Option 4: None of these

- This suggests that none of the given situations applies.

- However, MUx = Px is the typical condition for equilibrium, so this option isn’t relevant.

The correct answer is highlighted for clarity.

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