Question

Observe the flowing indifference schedule.locate the consumers equilibrium if price og good x is rs50 and price if good y is rs25..give reason for ur answer

Answer 1

Answer:

The consumer equilibrium is found by comparing the marginal utility per dollar spent (the ratio of the marginal utility to the price of a good) for goods 1 and 2, subject to the constraint that the consumer does not exceed her budget of $5.