Question

A consumer consumes only two goods X and Y. The marginal rate of substitution is 1 Prices of X and Y are rupees 4 per unit respectively
Is the consumer in equilibrium? What will be further reaction of the consumer?
a. The consumer is not in equilibrium, he consumes more of good x
b. The consumer is in equilibrium, he consumes both the goods
c. The consumer is not in equilibrium, he consumes more of good Y
d. none of these

Answer 1

Answer:

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