A consumer, Mr Pita is in equilibrium He consumes two goods X and Y, with given prices Px and - Economics - Market Equilibrium

Question

A consumer, Mr Pita is in equilibrium He consumes two goods X and
Y, with given prices
Px and Py Explain what will happen if:
(a) MUx/ Px is less than MUy/Py
(b) Px rises

Mohit · Accepted Answer

Dear Student,
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A consumer, Mr Pita is in equilibrium. He consumes two goods X and Y, with given prices Px and Py. Explain what will happen if: (a) MUx/ Px is less than MUy/Py (b) Px rises

A consumer, Mr Pita is in equilibrium. He consumes two goods X and Y, with given prices
Px and Py. Explain what will happen if:
(a) MUx/ Px is less than MUy/Py
(b) Px rises