Explain why the price which a consumer is willing to pay for a good equals the marginal utility of that good,when purchasing a good.

Hey Roja, I think you might be asking in context to the Consumer Equilibrium in case of one commodity. In case of a single commodity, a consumer attains equilibrium when the utility derived from each additional unit of the rupee spent on the commodity becomes equal to the Marginal Utility of Money. In other words, the consumer attains equilibrium when, Marginal Utility of a Rupee spent on the commodity = Marginal Utility of Money  Algebrically, If we assume that marginal utility is not equal to the price, then there can be 2 possibilities:

a. MU>P           b. MU<P  

If MU>P, the consumer will buy more till the marginal utility falls down to the level of price. Conversely, if MU<P naturally less will be purchased and the marginal utility goes up to become equal to the price. Thus, equality between the margianl utility and the price indicates the position of consumer's equilibrium, when one commodity is purchased.  

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