how is equlibrium of a consumer isaffected when MUm happens to rise and Px is constant - Economics - Theory of Consumer Behaviour

Question

how is equlibrium of a consumer isaffected when MUm happens to
rise and Px is constant?

Shvetika S. · Accepted Answer

We know that according to utility analysis, in case of a single commodity, the consumer equilibrium is given by

$\frac{{MU}_{x}}{P_{x}} = {MU}_{m}$

where,

MU_x represents Marginal Utility of commodity x

P_x represents price of commodity x

MU_m represents Marginal Utility of money

In case, MU_mrises while P_x is constant then this suggests that Marginal Utility of a Rupee spent on the commodity becomes less than the Marginal Utility of Money, i.e.

$\frac{{MU}_{x}}{P_{x}} < {MU}_{m}$

This implies that for the consumer what he pays is higher than the worth of the commodity for him. Thus, the consumer would reduce consumption of the commodity x, till he finds the equality between the two.

how is equlibrium of a consumer isaffected when MUm happens to rise and Px is constant?