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  • Diagram:: Schedule

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    GT ANUP
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    The document presents information about marginal utility (MU) and total utility (TU). It shows that as units of a commodity increase, TU increases but MU decreases. TU is at a maximum when MU becomes zero, and TU declines when MU becomes negative. The horizontal axis represents units of the commodity while the vertical axes represent TU and MU. Consumer equilibrium is defined as the situation where a consumer maximizes satisfaction given a budget, which can be determined as the quantity where MU equals the price per unit. There are three types of consumer equilibrium: for one commodity, for two or more commodities, and specifically for two commodities.

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    The document presents information about marginal utility (MU) and total utility (TU). It shows that as units of a commodity increase, TU increases but MU decreases. TU is at a maximum when MU becomes zero, and TU declines when MU becomes negative. The horizontal axis represents units of the commodity while the vertical axes represent TU and MU. Consumer equilibrium is defined as the situation where a consumer maximizes satisfaction given a budget, which can be determined as the quantity where MU equals the price per unit. There are three types of consumer equilibrium: for one commodity, for two or more commodities, and specifically for two commodities.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    8 views1 page

    Diagram:: Schedule

    Uploaded by

    GT ANUP
    The document presents information about marginal utility (MU) and total utility (TU). It shows that as units of a commodity increase, TU increases but MU decreases. TU is at a maximum when MU becomes zero, and TU declines when MU becomes negative. The horizontal axis represents units of the commodity while the vertical axes represent TU and MU. Consumer equilibrium is defined as the situation where a consumer maximizes satisfaction given a budget, which can be determined as the quantity where MU equals the price per unit. There are three types of consumer equilibrium: for one commodity, for two or more commodities, and specifically for two commodities.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    1.

    Schedule: Marginal utility (MU) In

    Units
    Total utility (TU) of
    50 In
    50 40 TH
    90 30
    2
    120 25
    4 145 10
    5
    155
    6 160
    7 160 -2
    8 158

    Diagram: C

    Utility
    TU

    O Units

    Utility
    MUx

    Units X

    In the given diagram and schedule, The relation between TUand MU is presented .The TUcurve slopes
    upward from left to right whereas the MU curve slopes downwards from left to right. When TU is maximum
    MU becomes zero(0)
    Atlast, when TU declines, MU becomes negative.
    The horizontal axis (ox-axis) represents about the units of commodity and on vertical axis (oy-axis) units of
    total and marginal utility are represented.

    Consumer equilibrium:
    It is a situation where a consumer secures maximum
    satisfaction with minimum budget. It is called as a
    point ofbalance as the consumer doesn't want to change the level ofsatisfaction.
    Hence, it can be derived as the quantity of output at which the
    consumer maximizes its satisfaction with
    his/her given level of income.
    There are 3types of consumer equilibrium:
    1. Incase of onecommodity.
    2. In case of2 or more commodities.
    3. In case of only 2 commodities.

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