Question

How does consumer reach equilium when he buy only one commodity explain with the help of marginal utility schedule?

Answer 1

Heya....

In one commodity case consumer reach to his Equilibrium by these factors..

* Marginal Utility of money..

* Marginal Utility of commodity...

* Prices of the commodity....

Equilibrium struck when...

MUx/ Px = Mum....

Mum is 5...
Px is 4...
MUx is ... 20...

Then.. 20/4= 5 ...