**Consumer equilibrium exists when:**- ○ P/MU of all goods is the same - ○ MU/P for all goods is the same - ○ TU/P for all goods is the same - ○ the MU for all goods is the same **Explanation:**This text appears to be multiple-choice options explaining the conditions under which consumer equilibrium is achieved. Consumer equilibrium is a state in consumer theory where a consumer derives the highest possible satisfaction or utility from their available income, given the prices of goods and services. Each option suggests a different condition for equilibrium.1. **P/MU of all goods is the same:** This implies the price per unit of utility should be equal across all goods.2. **MU/P for all goods is the same:** Marginal utility per price paid should be equal for each good. This is the typical condition for consumer equilibrium based on the principle of equi-marginal utility.3. **TU/P for all goods is the same:** Total utility per price is the same, which is not a usual condition for consumer equilibrium.4. **The MU for all goods is the same:** Marginal utility is the same for all goods; however, this doesn't account for differences in price.The correct principle often used in economics for consumer equilibrium is when the marginal utility per unit of cost (MU/P) is equal across all goods.

Option B Condition for consumer equilibrium for two goods X and Y is that the Slope of indifference…

Answered: Consumer equilibrium exists when: P/MU…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Consumer equilibrium exists when: P/MU of all goods is the same MU/P for all goods is the same TU/P for all goods is the same the MU for all goods is the same