(i)Determine the quantity of apples a consumer would buy at a given price in the market. Use cardinal utility analysis (ii) What quantity of apples would he consume if apples are available free of cost?

(i)Determine the quantity of apples a consumer would buy at a given pr

1.	(i)Determine the quantity of apples a consumer would buy at a given price in the market. Use cardinal utility analysis (ii) What quantity of apples would he consume if apples are available free of cost?
Answer» Solution :(i)CONSUMER equilibrium is DETERMINED at a point where marginal utility (Rs) of apples WOULD be equal to price paid for apples. (ii)In case of apples are available FREE of cost, the consumer will stop consumption at the point of satiety i.e, when MU=0. It is because as per the CONDITION of consumer equilibrium `MU_("apples")=Price_("apples")`=zero