Question

a consumer will purchase more of goods Y than good X,only when
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Answer 1

Answer:

Law of diminishing marginal utility states that as consumption increases the marginal utility declines. A consumer will purchase more of good X when marginal utility derived from the consumption of good X is greater than the marginal utility derived from the consumption of good Y. The consumer through consumption of more of Good X decrease the marginal utility of good X, so as to equate the utilities derived from both the goods and achieve consumer's equilibrium

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