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starting from an initial situation of consumers equilibrium ,suppose the marginal utility of rupee increases , will it increase or  decrease the quantity demanded of the product ?

hi himanshi..well here is the answer to your question..

the marginal utilty increases with an increase in the price of the commodity..then further at some point ..it wil become 0 when there exists maximum stisfaction obtained from a commodity.. well..thats a different concept..however the marginal utility would rise when the consumer lessens its demand for that commodity.. at the initial point of consumers equilibrium the marginal utlity would rise..i.e..the marginal utility and the qantity demanded are inversely related in nature !

hope u got ur answer.. !!!

cheers!

keep smilin ! :) 

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. Suppose the price of one orange is RS 2 & the MU of money is 4 utils. The consumer’s equilibrium will be

So MUx = 8 which is at 6 oranges.
Now if MU of money increases to 5 the 6th orange will give utility worth 8/5 = 1.6 which is less than price. Hence to remain in equilibrium the consumer has to reduce hisconsumption from 6 oranges to 5 oranges where the utility is 10. So again 
 
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Thank you Priya
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I think the question can have 2 answers . MU of a rupee increases gives rise to increase in purchasing power of a person keeping the price of commodity constant and in other way it may even decrease price of the commodity . It is because of rise in MU of money , a consumer consumes more but after that , a point comes when he has to reduce consumption for attaining equilibrium. I am not very sure about my answer , if it is wrong please clear my doubt also . Bit confused between theory and practical life.
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Quantity demanded increase Syad
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For initial situation of consumer equilibrium, refer to section 2.4.1. We have studied in that section that consumer equilibrium is determined at 3 units of the commodity where
MU=Price =Rs.3

Now the consumer has to buy less Le, 2 units as here
MU(Rs.)=Price(Rs.)
This can be shown in the diagram also

Initially, the price was Rs.3, accordingly, consumer equilibrium was determined at point E .i.e, 3 units Now after increase in price from Rs.3 to Rs.4. consumer equilibrium is determined at point E1E1 i.e., at 2 units.
Therefore, the consumer buys less than before.
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asdwwd
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