Sita and Geeta are two close friends and both are graduate working women. Sita is an economic graduate and doing research in economics while Geeta is a customer relation manager in a multinational company. In 1sy January, 2023 both the friends decide to go out for a dinner to celebrate new year. Geeta is fond of Ice-Cream (Orange bar) and has decided to but from a street vendor ₹10 unit after discount. She has also offered to Sita but Sita denied as having throat infection.

Geeta has requested to Sita to apply economics principles and to respond, when she should be stopped consuming more ice-cream. On consuming 3rd unit of Ice-cream, Geeta has obtained additional satisfaction of 18 units while the marginal utility of a rupee is 2 utils.

State the condition of consumer equilibrium in case of single commodity which is being used by Sita to suggest her friend Geeta whether to consume more units of Ice-cream or not.

Price of the Good = Marginal Utility of the good (in Rupees)

The correct answer is option (3) : Price of the Good = Marginal Utility of the good (in Rupees)

Condition of consumer equilibrium is:

MU (Rs) = Price (Rs) or

MU (utils)/MU of a rupee =Price (Rs)