Explain consumer equilirium in case of hicksian analysis
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Hicksain analysis is also called Indifference Curve analysis........
The consumers eq in this case has two conditions......
1 IC is convex to the origin.....
2 MRSxy= Px / Py.....
According to these.... consumers eq strike here when the rate at which consumer wants to subditude a good for other one is equal to the rate at which market allows to subditude that .....
The consumers eq in this case has two conditions......
1 IC is convex to the origin.....
2 MRSxy= Px / Py.....
According to these.... consumers eq strike here when the rate at which consumer wants to subditude a good for other one is equal to the rate at which market allows to subditude that .....
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