Question

A consumer consume 2 good x and y explain the conditition of his equibilirum using the utilit approach

Answer 1

The consumer equilibrium in case of consumption of two goods is explained by the law of equi-marginal utility. As per the law, a consumer allocates expenditure between two commodities in such a manner that the utiloty derived from each additional unit of rupee spent on each of the commodities is equal to the marginal utility of money.