a consumer consume only two goods A and B and is in equilibrium.show that when price of goods b falls demand for b rises
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Heya...
Suppose a consumer consumes only two goods A and B in Equilibrium...
If price of good B falls means consumer use to Buy more of B good...
Now situation us.. A < B....
In this demand of B rises but according to law of diminishing marginal Utility at a point consumer get bored from B good and Equilibrium will struck again..
Suppose a consumer consumes only two goods A and B in Equilibrium...
If price of good B falls means consumer use to Buy more of B good...
Now situation us.. A < B....
In this demand of B rises but according to law of diminishing marginal Utility at a point consumer get bored from B good and Equilibrium will struck again..
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