a consumer consumes only two goods X and good y and is in equilibrium price of good X Falls so that it will lead to rise in demand for good x
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Explanation:
According to the utility analysis, the consumer is in equilibrium when:
MUx/Px=MUy/Py=Mum
Now, given that Px falls,then
MUx/Px> MUy/Py
Since per rupee MUx is higher than per rupee MUy the consumer will buy more units of X commodity and less of Y commodity.
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