Practicing Success
The following is the schedule representing the marginal utilities obtained by a consumer from consuming good X and marginal utility of a rupee is 2. State the number of units being consumed by him at a prices of ₹6 to obtain his equilibrium
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4 units 3 units 2 units 5 units |
3 units |
The correct answer is option (2) : 3 units Given marginal utility of a Rupee = 2 A consumer will be in equilibrium when MU (₹) = Price (₹) We have to find equilibrium when P =6 Thus, the units at which the marginal utility in rupees = 6, this will be the equilibrium.
The MU in rupee is equal to 6 at 3 units. This is the point of consumer equilibrium. |