A consumer consumes only 2 goods X and Y. MU OF X and Y is 3. Price of X and Y are ₹4 and ₹1 respectively. is counsumer in equilibrium??? what will be the further reaction of consumer? give reasons....
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Explanation:
in in case of two goods a consumer strikes equilibrium when ,
MUx/Px = MUy/Py
given that ,
MUx/Px = 3/4 = 0.75
MUy/Py = 4/4 = 01
here , MUy/Py is greater than MUx/Px
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