When MRsxy less than Px/Py, will consumer be in equilibrium? If not, what will be his reaction?
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Heya....
equilibrium will not be stuck in the above case....
So to attain equilibrium consumer have to increase the consumption of X good ....so due to law of diminishing marginal Utility as he increased it's consumption so automatically it's desire reduce and equilibrium struck....
equilibrium will not be stuck in the above case....
So to attain equilibrium consumer have to increase the consumption of X good ....so due to law of diminishing marginal Utility as he increased it's consumption so automatically it's desire reduce and equilibrium struck....
AnkitaRaj:
Thank u
wlcm
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