I have a query . We know that equilibrium condition will be satisfied when MUx =Px. In this case ,when consumer consumes 4 ice creams then MUx = 2 = Px. Then why CONSUMING 4 UNITS is not point of equilibrium.. Please answer the whole question in detail and the question given in picture
Example 7 The following schedule gives the number of ice-creams consumed and the total utility derived from each level of consumption. Given that the price of ice-cream is fixed at ₹2 per unit, determine the optimal level of consumption, assuming MU of a rupee is 2 utils. Give reasons.
No of Icecreams | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
TU (Utils) | 5 | 9 | 12 | 14 | 15 | 15 | 14 | 12 |