Question

If MUX = 40 and MUY 100, Py = 25 then Px=​

Answer 1

Explanation:

$\color {pink}\boxed{\colorbox{black} { ♡answer♡}}$

The equilibrium is struck when: MUx/ Px=MUy/Py=MUm. Substituting the value , 20/4=25/5 = 5. Implying,the consumer is in state of equilibrium

Answer 2

The value of Px = 10

Given: MUx = 40, MUy = 100 and Py = 25

To find: the value of Py

Solution: If we consider Consumer Equilibrium

⇒ $\frac{Mux}{Px} = \frac{MUy}{Py}$   [ condition for Consumer Equilibrium ]

Where,

Mux = Marginal utility of good x, Px = Price of good x

Muy = Marginal utility of good y, Py = Price of good y  

Now substitute above value in Consumer Equilibrium condition

⇒ $\frac{40}{Px} = \frac{100}{25}$  

⇒ 40(25) = 100(Px)

⇒ 40(1) = 4(Px)

⇒ Px = 10

Therefore, the value of Px = 10

#SPJ2