Question

A consumer, Mr Aman is in state of equilibrium consuming two goods X and Y, with given prices Px and Py . What will happen if ?​

Answer 1

hey!!

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☆Answer:-☆

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• If (MUx/Px) > (MUy/Py) then it means that satisfaction derived from consumption of good X is greater than the satisfaction derived from consumption of Good Y.

1. Mr. Aman will reallocate his income by spending more on good X. Utility derived from X goes on diminishing and reverse preposition occurs for Good Y this process will continue till (MUx/Px) = (MUy/Py).

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☆hope help u!!☆

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Answer 2

Here is your answer mate ❤️❤️

A consumer, Mr. Aman is in state of equilibrium consuming two goods X and Y , with given pricez Px an Py then

If py fallz MIx / px < MUy / Py, then it means that satisfaction derived from spending a rupee on good X is lesser than the satisfaction derived from spending a rupee on good Y.

Mr. Aman regulate his income by substituting good Y for good X.

Hope this helps you ❤️❤️☺️☺️