Economy, asked by kallulkhanikar07, 11 months ago

why price is equal to MU at equilibrium?​

Answers

Answered by Zisha7
2

Answer:

So, in equilibrium, the marginal utilities of the different commodities purchased are proportional to their prices and these ratios of marginal utility to price must be equal to the common marginal utility of money. where MUM is the common marginal utility of money (i.e., marginal utility of a rupee).

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