Question

How consumer will react in case of two
commodity consumer equilibrium when
the price of x falls ?

plz plz help me to answer this..​

Answer 1

Answer:

Consumer Equilibrium in Case of a Two Commodity, With the Help of Utility Analysis. Suppose, a consumer consumes only two goods X and Y. He will attain equilibrium only if he allocates his given income on the purchase of good X and Y in such a way that per rupee MU of both the products is equal and he gets maximum TU.