Economy, asked by GAM3RBOY, 8 months ago

if MRS xy>px/pg what is the reaction of consumer​

Answers

Answered by wwwuamuam
31

Consumer is willing to pay more for x than the price of market.

Result:

Consumer buys more of x.

Explanation:

given:

MRS xy> Px/Py

MRS falls till it becomes equal to the ratio of prices & the equilibrium is established.

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