A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are Rs.25 and Rs.40 respectively and marginal utility of good Y is 50 units. What will be marginal utility of good X. a. 100 units b. 1unit c. 80 units d. 200 units give a proper answer please i will mark as brainliest
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In such a case , the consumer rearranges his consumption combination such that the equality is again restored. He would decreases his consumption of commodity X. With this decreases, marginal utility of x rises, As a result the ratio of marginal utility to price of X rises. The consumer would continue decreasing the consumption of commodity X till the equality between the ratio of marginal utility to price in case of X and Y is again reached.
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Answer:
c. 80 units
Explanation:
mu of Y is 50 units = 50 x 40 = Rs. 2,000
MUₓ = MUᵧ/Pₓ
= 2000/25
= 80 units
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