Question

Explain the law of Equi-marginal utility.

Answer 1

The law of equi-marginal utilitystates that the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spend on each good is equal. In other words, consumer is in equilibrium position whenmarginal utility of money expenditure on each goods is the same.



HOPE IT HELPFUL DEAR AND MARK ME BRAINLIST

Answer 2

Answer:

It explains the behavior of a consumer when he consumes more than one commodity. The law states that a consumer should spend his limited income on different commodities in such a way that the last rupee spent on each commodity yield him equal marginal utility in order to get maximum satisfaction.