alleryStart learning →The utility-maximizing choice identified by the general rule is called the:
AConsumer equilibrium
BProducer equilibrium
CMarket disequilibrium
DBudget equilibrium
Answer & Solution
Correct answer: A. Consumer equilibrium
1. The best affordable bundle has a formal name.
2. The general rule compares marginal utility per dollar across goods.
3. In short, the general rule shows us the utility-maximizing choice.
4. That choice is called the consumer equilibrium.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
Keep practising Consumer Choices
Browse all Consumer Choices questions for AP Microeconomics, or explore more Economics topics.
Related questions
Complete the consumer rulesWork the budget lineTrue or false: consumer choicesTap what belongs to each effectMatch each consumer choice termA price rise for a normal good makes both effects push consumption of that good in which dDiminishing marginal utility means the total utility from extra units continues to rise buConsumer equilibrium is found by comparing across goods the marginal utility: