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Ice cream sales for Rs.20.Mohini who …

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Ice cream sales for Rs.20.Mohini who like ice cream already consume 4.Her marginal utility of 1Re is 4.Should she consume more ice cream or stop the consumption to maintain equilibrium?
  • 2 answers

Mikun Mk 7 years, 11 months ago

According to consumer equilibrium in case of one commodity MUx = Px. Here Px is Rs.20 and MUx is 16 utils (4×4). Thus she should consume one more ice cream in order to gain 4 utils more so that she would attain equilibrium.

Rahul Jain 7 years, 11 months ago

1Re means??
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