A consumer consumes only two goods X and Y whose prices are Rs. 4 and Rs. 5 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4, is the consumer in equilibrium? Give reason. What will a rational consumer do in this situation? Use utility analysis.

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Answers

2016-03-18T16:36:51+05:30
2. When income of the consumer falls the impact on price-demand curve of an .... Aconsumer consumes only two goods X and Y whose prices are ` 4 and ` 5 per ... Ifthe consumer chooses a combination of the two goods with marginal utility of X ... Marginal utility of the last rupee of expenditure on each good is the same. 2.
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