Question

given the price of a good, how does a consumer decide as to how many units of that good to buy? explain. (3m) (pls answer fast. answer needed urgently)

Answer 1

let X be the commodity that the consumer buys 
MUm = 4 units
Px  = Rs 4
Marginal utility schedule be as under :
                UNITS         MUx
                 1                20
                 2                 18
                 3                 16
                 4                 10
the equilibrium is struck when rupee worth of satisfaction that the consumer expects to get (MUm) is equal to rupee worth of satisfaction that he actually gets (MUx/Px) 

With reference to the above schedule , the consumer strikes his equilibrium when :
MUx/Px = MUm
MUx/4  = 4
=> MUx = 16
the above schedule shows that MUx = 16 , when 3 units of the good-x are consumed . hence, equilibrium is struck when 3 unit of good-x are consumed.