Question

MUx of X is 40 and MUy of Y is 30. If the price of Y is 9, then price of X at equilibrium will be
answer is 12 but i want solution​

Answer 1

The price of X at equilibrium will be 3

Given,

MUx = 40, MUy = 30 and price of Y (Py) = 9

To Find,

Price of x (Px)

Solution,

Consumer's equilibrium is achieved when marginal utility per rupee spent on good-x will be equal to marginal utility per rupee spent on good-y.

i.e. MUx / Px = MUy / Py

putting the given values in the above equation,

40 / Px = 30 / 9 ⇒ 40 / Px = 10 / 3

Now, by cross multiplying -

40 x 3 ÷ 10 = Px

therefore, Px ( Price of X ) = 12

Answer 2

Answer:

MUx=40

MUy=30

Price of Y P(Y) =9

To find (PX)

MUx÷ Px = MUy ÷Py

40 ÷Px =30÷9

40×3÷10=Px

Px=3×4

Px= 12