When MRsxy less than Px/Py, will consumer be in equilibrium? If not, what will be his reaction?
Answers
Answered by
4
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
Similar questions
Social Sciences,
8 months ago
Math,
8 months ago
English,
8 months ago
English,
1 year ago
Science,
1 year ago