Question

Archit consumes two commodities X and Y whose price are 9 and 12 per unit
respectively. Thus he strikes his equilibrium when he is getting Marginal Utility
from X equal to 18 and that from Y also equal to 18?
(b)
When does a consumer attain equilibrium according to indifference curve
approach?
​

Answer 1

Answer:

how to make sure you have any questions or need any further information technology and services are available in your surroundings and identify the function of the following statements

Answer 2

Given:

Px = 9

Py = 12

MUx = 18

MUy = 18

To find:

Whether Archit strikes his equilibrium.

Solution:

MUx / Px = MUy / Py

MUx / Px = 18 / 9

MUy / Py = 18 / 12

Here, 18/9 > 18/12

MUx / Px ≠ MUy / Py

Therefore, Archit does not strike his equilibrium.

Condition of consumer's equilibrium:

1. MRS = Ratio of prices of the goods (Px / Py)
2. MRS should be continuously falling