Question

Using utility analysis explain how will a consumer decide as to how much quantity of the good

to buy?​

Answer 1

Given the price of the good, a consumer will decide the amount of goods to buy. So, the consumer compares the price of the good with its utility. ... The marginal utility is greater than the price paid for the good, i.e. MUX > PX implies that the consumer is not in equilibrium and buys more of a good.