How would you as a consumer change your consumption basket when the rate at which you are willing to substitute good x for good y is higher thann the rate at which market allows you to do it?

Dear student, 
The given situation means that MRS > Price ratio. In such a situation to attain equilibrium the ​consumer would increase consumption of X and reduce that of Y. 

  • 0
Meritnation expert  please provide an answer ASAP as everybody seems to have a conflicting answer to this question, the answr in textbook is doubtfull
  • -3
X good consumption rise
  • -1
What are you looking for?