Question

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

Answer 1

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..