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How many units of a commodity will you consume, if you don't have to pay any price for it? |
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Answer» Point of satiety is where utility gained = utility sacrificed (Price) Even though you don't have to pay for it, you will stop consumption of the commodity where TO is maximum and MU is zeroIn the diagram given below, point of satiety is point E which shows that he will consume OQ amount of the commodity.
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