Question

consumer equilibrium in case of one commodity​

Answer 1

One commodity case

Factors at which Purchase of commodity depends.

1. Price of commodity.
2. Marginal utility of commodity.
3. Marginal utility of money.

Let X be the commodity that the consumer buys .

MUm = 2 utils

Px = Rs 4

✧。Marginal utility schedule refers to the attachment.

The equilibrium is struck when rupee worth of satisfaction that the consumer expect to get MUm is equal to the rupee worth of satisfaction that he actually gets $\frac{MUx}{Px}$

Thus , equilibrium struck when:-

$\frac{MUx}{Px}$ = MUm

$\frac{MUx}{4}$ = 2

MUx = 8 , when 4 unit of commodity x are consumed.

Hence , equilibrium is struck 4 unit of commodity X are consumed