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What will happen if the ratio …

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What will happen if the ratio of mu of good x is less then that of good y. Exlain

    • Posted by Krishna Kumar 7 years, 2 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Deepak Kumar 7 years, 2 months ago

    If MUx < MUy , Than .1.consumer will increase his consumption of Y and reduce his consumption of X ( income is fixed ). 2.it will lead to increase in MUx and decrease in MUy. 3.it will go on till MUx =MUy and equilibrium is restored.

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