Economy, asked by manishreddy1599, 4 months ago


7. What are the conditions for consumer's equilibrium (one commodity case) under Utility
Approach? What will be the reaction of the consumer if, at a particular level of
consumption, he obtains more marginal utility (MUx) from the last unit of the commodity
than the price (Px) he has to pay for it?
unor falen Give reasons for your answer.

Answers

Answered by Lalith1316
0

Explanation:

Consumer will achieve equilibrium only when the price of the commodity which consumer is willing to pay matches the utility which the consumer is getting from the consumption in the units of money ie MUx = Px

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