Question

A consumer consumes only two goods X and Y. Marginal Utilities of X and Y are 5 and 4 respectively. The

prices of X and Y are Rs. 4 and Rs. 5 per unit respectively. Is the consumer in equilibrium? What will be the

further reaction of the consumers?​

Answer 1

Answer:

mark me as a brainleast

Answer 2

Answer:

Thus, the consumer is not in equilibrium. In order to reach the equilibrium, a rational consumer would increase the consumption of good X and decrease that of good Y.