Suppose the price of a connodity 'x' is given as Rs 8 and the MU (in terms of money) for 4 units is given as : {:("Units",1,2,3,4,),(MU_(x) (Rs),12,10,8,6,):} How many units should a consumer purchase so that his satisfaction is maximum ?

Suppose the price of a connodity 'x' is given as Rs 8 and the MU (in t

1.	Suppose the price of a connodity 'x' is given as Rs 8 and the MU (in terms of money) for 4 units is given as : {:("Units",1,2,3,4,),(MU_(x) (Rs),12,10,8,6,):} How many units should a consumer purchase so that his satisfaction is maximum ?
Answer» Solution : Consumer will purchase 3 units because at `3^(RD)` unit, MU = Price `` The consumer will not purchase less than 3 units as `MU gt` Price and these is scope for INCREASING the total satisfaction by purchasing more units. `` SIMILARLY, consumer will not buy more than 3 units as `MU lt` Price and total satisfaction can be increased bypurchasing less quantity.