If MUx/Px > MUY/PY, the consumer should buy more of commodity-Y and less of commodity-X. true or false and give reason.
Dear Student
FALSE, when MUX /PX > MUY/PY ,it means price of X falls so consumer will buy more of X than commodity Y , only than they will reach again at equilibrium i.e. MUX /PX = MUY/PY.
Regards
FALSE, when MUX /PX > MUY/PY ,it means price of X falls so consumer will buy more of X than commodity Y , only than they will reach again at equilibrium i.e. MUX /PX = MUY/PY.
Regards