Question
Starting from an initial situation of consumer's equilibrium state, how does increase in marginal utility of one rupee affect the quantity demanded of a product?
✓
Answer
Quantity demanded will decrease because of corresponding to higher MU of one rupee. MU of the commodity should also be higher which is possible only when consumption (quantity demanded) decreases. 
It can be explained with the help of the following schedule and dia-gram and assuming price of quantity X to be 1 and for consumer MU of a rupee is 20 utils.
As is given in the Question, if marginal utility Rupee increases (let it increases to 30 utils), then Quantity will decrease. It can be shown with the help of schedule and diagram.
It can be explained with the help of the following schedule and dia-gram and assuming price of quantity X to be 1 and for consumer MU of a rupee is 20 utils. | Units of Commodity consumed | Marginal Utility ( utilds) | MU in term in term of money (₹) (MU of commodity ÷ MU of ₹ ) | Price of commodity (₹) |
| 1 | 50 | 2.5 (=50 ÷ 20 ) | 1 |
| 2 | 40 | 2 | 1 |
| 3 | 30 | 1.5 | 1 |
| 4 | 20 | 1 | 1 |
| 5 | 10 | 0.5 | 1 |
| Units of Commodity consumed | Marginal Utility ( utilds) | MU in term in term of money (₹) (MU of commodity ÷ MU of ₹ ) | Price of commodity (₹) |
| 1 | 50 | 1.6 (=50 ÷ 30 ) | 1 |
| 2 | 40 | 1.33 | 1 |
| 3 | 30 | 1 | 1 |
| 4 | 20 | 0.66 | 1 |
| 5 | 10 | 0.33 | 1 |
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