Derive the consumer satisfaction level in the law of equal marginal utility when there are two commodities A&B the price of A=2 and B=3 Rs the consumer income is 24
Dear student,
When a consumer wants to purchase two commodities, the equilibrium will be determined in accordance with the law of equi-marginal utility. In this case he will distribute his money income among these goods in such a way as he gets equal marginal utility in terms of money from all the goods. It is also called 'Proportionality Rule'.
Regards
When a consumer wants to purchase two commodities, the equilibrium will be determined in accordance with the law of equi-marginal utility. In this case he will distribute his money income among these goods in such a way as he gets equal marginal utility in terms of money from all the goods. It is also called 'Proportionality Rule'.
Regards