Question

What happens if MUx/Px > MUy/Py?​

Answer 1

Answer:

If MUx / Px is greater than MUy / Py, then the consumer will substitute good 'x' for good 'y'. As a result the marginal utility of good 'x' will fall. ... The consumer will spend his money income in such a way that marginal utility of each good is proportional to its rupee.

Answer 2

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Explanation:

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