Explain the consumer equilibrium in case …

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Explain the consumer equilibrium in case of two commodities with help of utility approach

Posted by Ankit Yadav 7 years, 2 months ago

CBSE > Class 11 > Economics

1 answers

Tarang Chopra 7 years, 2 months ago

In case of two commodities the ratio between MUx and Px and the ratio between MUy and Py is suitable which is symbollically MUx/Px = MUy/Py This condition is suitable when the equation of budget line Px.Qx+Py.Qy=M is equal to the income of consumer.

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