Economy, asked by lakshikaranawat2004, 5 months ago

A consumer consumes only two goods and is in equilibrium. Show that

price and demand for a good are inversely related. Explain using utility

analysis

Answers

Answered by salina88

1

Answer:

A consumer is said to be equilibrium when following conditions is satisfied :

MUx/Px=MUy/Py=MUm

Suppose the price of Xfalls then,

There is an inverse negative relationship between price and demand for a good.

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