Question

A consumer consumes only two commodities x and y whose prices are Rs 5 and Rs 4 respectively. If the consumer chooses a combination of two goods with marginal utility of x equal to 4 and marginal utility of y equal to 5, is the consumer in equilibrium? Why or why not? What will a rational consumer do in this situation? Use utility analysis ( 3 marks )
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Answer 1

Explanation:

consumer consumes only two commodities x and y whose prices are Rs 5 and Rs 4 respectively. If the consumer chooses a combination of two goods with marginal utility of x equal to 4 and marginal utility of y equal to 5.