Question

What is the formula of consumers equilibrium in case of two goods

Answer 1

Answer:

A consumer when consuming a single commodity (suppose X) is at equilibrium if MUX/PX = MUM. Similarly, a consumer consuming another product (assume Y) is at equilibrium if MUY/PY = MUM. By equating the above two equations, it is found that MUX/PX = MUY/PY = MUM.

Hope it helps u !