Economy, asked by stevesunil101, 1 month ago

How will the consumer move along his IC in a situation when MRSxy >
Px/Py?

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Answered by ss0228896
0

Answer:

How will the consumer move along his indifference curve in a situation when MRS>( Px/Py). ... IF MRS> PX/PY, The consumer will move downwards in the IC curve . A consumer is in equilibrium when MRS=PX/PY. When MRS is greater then the ratio of prices of both the products.

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