A consumer consumes only two goods X and Y . The consumer settele an equilibrium point where mux/px= muy/py= 1. Defend or Refute. Explain with the help of consumers equilibrium utility analysis?
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Explanation:
When a consumer is purchasing one commodity , he stops buying when its price and utility have been equated. Meaning the marginal utility is equal to the price. At this point, his total utility is the maximum.
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