Question

if price of a good is given, how does a consumer decide as to how many units of that good to buy? explain.

Answer 1

how could I explain see on googlle

Answer 2

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.