Question

(2) Given the market price of a good how does a consumer decide as to how many units
of that good to buy? explain.​

Answer 1

Explanation:

In order to decide, how much of a good to buy at a given price, a consumer compares Marginal Utility (MU) of the good with its price (P). The consumer will be at equilibrium, when the Marginal Utility of the good will be equal to the price of the good.