Question

on the consumption of 10 units of a commodity , a consumer finds that MUx has exceeds the marginal utility of money . should be reduce the consumption of X so that he strike an equilibrium. Give reason in support of your answer​

Answer 1

Explanation:

In order to achieve equilibrium, MUX should reduce because price (PX) remains constant and MUM is also constant. This will happen only when consumption of commodity - X is increased.

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