What do economists mean by consumer ...

[abarnes]

What do economists mean by consumer equilibrium?

Question 2

Why do skilled workers earn relatively higher wages than unskilled workers?
 a. The marginal productivity of skilled workers is low.
  b. The marginal cost of hiring skilled workers is low.
  c. The supply of skilled workers is relatively less.
  d. There is an abundant supply of skilled workers.
  e. The marginal cost of hiring unskilled workers is high.

[macybarnes]

Answer to Question 1

In order to reach consumer equilibrium, consumers must allocate their income in such a way that the marginal utility per dollar for each good is the same for every good. In essence, the value-per-dollar expended is equal for all goods at consumer equilibrium. If this was not so, consumers could make themselves better off by reallocating their expenditures among goods.

Answer to Question 2

c