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How many units of a commodity …

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How many units of a commodity should a consumer buy to get a maximum utility. Explain with the help of numerical example
  • 2 answers

Sakshi Jain 7 years, 3 months ago

Marginal utility = price of the comidity Example_ The price of banana is Rs 2/banana. No. Of bananas Total utility. Marginal utility 1. 5. 5 2. 9.5. 4.5 3. 13.5. 4 4. 17. 3.5 5. 20. 3 6. 22.5. 2.5 7. 24.5. 2 8. 26. 1.5 Then consumer will buy 7 bananas because Mux = Px= 2

Shivani Jindal 7 years, 4 months ago

A consumer gets more satisfaction on equilibrium point he wants that the goods give them same level of satisfaction
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