A consumer consumes only two goods X and Y whose prices are rupees 2 and rupees 1 respectively. If the consumer chooses a
combination of the two goods with marginal utility of X being 4 and that of Y is also 4, is the consumer in equilibrium? What will a rational
consumer do in this situation?
a. The consumer is in equilibrium, he consumes both the goods
b. The consumer is in equilibrium, he consumes more of good x
c. The consumer is not in equilibrium, he consumes more of good y
d. none of the above
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Answer:
c
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