how many units of a commodity will you consume if you dont have to pay any price for it?
A consumer attains equilibrium at a point where the price of commodity is equal to the marginal utility derived from the last unit consumed of that commodity.
A consumer always strives to attain equilibrium.
In the absence of any price, we can take it as 0.
so, the consumer will consume up to that unit at which his marginal utility is 0.
mathematically,
let the commodity be x, Px be the price and MUx be the marginal utility of x.
at consumer equilibrium = Px
since Px = 0
MUx = 0
A consumer always strives to attain equilibrium.
In the absence of any price, we can take it as 0.
so, the consumer will consume up to that unit at which his marginal utility is 0.
mathematically,
let the commodity be x, Px be the price and MUx be the marginal utility of x.
at consumer equilibrium = Px
since Px = 0
MUx = 0