Given below is the utility schedule of a consumer for commodity X. The price of the commodity is Rs 6 per unit. How many units should the consumer purchase to maximize his satisfaction ? (Assume that utility is expressed in utils and 1 until = Rs 1). Given reason for your answer. {:("Consumption units",1,2,3,4,5,6),("Total utility (TU)",10,18,25,31,34,34),("Marginal Utility (MU)",10,8,7,6,3,0):}

Given below is the utility schedule of a consumer for commodity X. The

1.	Given below is the utility schedule of a consumer for commodity X. The price of the commodity is Rs 6 per unit. How many units should the consumer purchase to maximize his satisfaction ? (Assume that utility is expressed in utils and 1 until = Rs 1). Given reason for your answer. {:("Consumption units",1,2,3,4,5,6),("Total utility (TU)",10,18,25,31,34,34),("Marginal Utility (MU)",10,8,7,6,3,0):}
Answer» Solution :Consumer will purchase 4 units because at `4(th)` unit, MU = Price. ``The consumer will not purchase LESS than 4 units as `MU gt` Price and there is SCOPE for increasing the TOTAL satisfaction by purchasing more units. `` SIMILARLY, consumer will not buy more than 4 units as `MU lt` Price and total satisfaction can be increased by purchasing less quantity.