A consumer has 8 units of money to spend on apples and oranges. Construct a schedule to show his equilibrium position. What is the maximum utility that he can get from this units? ( MU of 1 unit = 12 utils)

Given:
Money = Rs 8
MUm = 12 utils
​Let the price of Apples be Rs 1 and price of oranges be Rs 1
 
Units of Apples
(units)
MUA
(utils)
Units of Oranges
(units)
MUO
(utils)
1
2
3
4
5
6
7
30
28
25
20
12
2
– 5
1
2
3
4
5
6
7
35
32
12
10
8
3
– 1

Equilibrium is struck when:
MUA PA=MUOPO=MUm
MUA =MUO=12

So, equilibrium is struck when consumer purchases 5 units of apples (spending Rs 5) and 3 units of oranges (spending Rs 3). 

The maximum utility that he can get from these units are 194 utils (30 + 28 + 25 + 20 + 12 + 35 + 32 + 12).

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