Question

When a commodity like ice-cream is available free of cost, this equilibrium through
utility analysis will be at:
(a) not sufficient information given (b) MU is zero
(c) MU is negative (d) MU is increasing

Answer 1

Answer:

Mera Kaun aapko maloom sorry ra

Answer 2

Equilibrium through  utility analysis

Explanation:

• When a consumer's expenditure has been fully adjusted, that is, when the marginal utility of his purchases is equal in both directions, it is called the consumer's equilibrium, according to Mashallian utility analysis.
• Then he doesn't want to buy more of one thing while selling less of the other.
• At the point of maximum utility, a consumer is said to be in a state of consumer's equilibrium. This is determined by the level of income the consumer has.
• When total utility and income are equal, a product's marginal utility is equal to its single unit price. Consider a scenario in which a consumer uses only two products, X and Y.
• When they allocate their given income to the purchase of X and Y, they will achieve equilibrium when the MU of both products is equal per rupee and the consumer receives the most TU.
• A consumer is happy when his tastes and the price of the two products are in harmony, so he spends a certain amount of money on the purchase of the two products in a way that provides the most satisfaction.
• Consumers reach equilibrium when they maximise their utility given their income and the market prices, according to Koulsayiannis.