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Mux/px greater than Muy/py... what shouldbe …

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Mux/px greater than Muy/py... what shouldbe done to attain equilibrium?

    • Posted by Pankajkumar Mishra 6 years, 10 months ago

    CBSE > Class 12 > Economics
    • 3 answers

    Mayank Garg 6 years, 10 months ago

    In this consumer is getting more satisfaction from good x as price paid by him then good y so he will increase the consumption of good x according to law of dmu the utility from good x will fall then the mux will fall till mux/px= muy/py.

    0Thank You

    Prateek Seth 6 years, 10 months ago

    Consumer will consume more of x than y.. Accordingly law of dmu get into effect and mu of good x tends to fall. This continues till mux/ px = muy / py

    0Thank You

    Tanisha Garg 6 years, 10 months ago

    In this situation consumer will buy more of good x in place of good y and mu of good x tends to fall and mu of good y tends to rise .this process continue till mux/px = muy/py

    0Thank You

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