No products in the cart.

A consumer consumes only two goods …

CBSE, JEE, NEET, CUET

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

A consumer consumes only two goods X and Y both priced at Rs. 3 per unit . Tf the consumer chooses a combination of these two goods with MRS equal to 3, is the consumer in equilibrium ? Give reason. What will a rational consumer do in this situation ? explain

Posted by Pranay Khator 6 years, 7 months ago

CBSE > Class 12 > Economics

3 answers

Nitin Jain 6 years, 7 months ago

I m sorry to say but both of u r wrong. In this case MRS = 3 Px = 3 Py = 3 So , MRS = Px / Py It means, 3 = 3/3 3 > 1 Means in this situation MRS > Px/Py. It means that to obtain one more unit of X the consumer is willing to sacrifice more units of y as compared to what is required in market. It induces the consumer to buy more of X so MRS falls and continuous to fall till it becomes equal to the ratio of prices and equilibrium is established.

Harsh Goel 6 years, 7 months ago

Consumer is not in equilibrium because 1<3. In this situation consumer continue consumption of good X till MRS =MRE

Abhishek Attri 6 years, 7 months ago

The consumer is in equilibrium when MU=Price A rational consumer prefer those thing which gives him a higher level of satisfaction

ANSWER

https://examin8.com

Test

Related Questions

Two types of marke diagram and explanation

Posted by Rijum Karlo 1 year, 4 months ago

CBSE > Class 12 > Economics

0 answers

why should the aggregate final expenditure of an economy be equal to the aggregate factor payment

Posted by Nandita Sharma 1 year, 5 months ago

CBSE > Class 12 > Economics

1 answers

Industrial licensing was used to promote regional equality. Discuss

Posted by Niyati Garg 1 year, 4 months ago

CBSE > Class 12 > Economics

0 answers

Explain the limitation of GDP as wellfare

Posted by Naman Jain 1 year, 4 months ago

CBSE > Class 12 > Economics

1 answers

What is deficit ?

Posted by Sakshi Singh 4 months, 1 week ago

CBSE > Class 12 > Economics

1 answers

Trends in credit availability

Posted by Shruti Singh 1 year, 5 months ago

CBSE > Class 12 > Economics

0 answers

What is receipt?

Posted by Geeta Gautam 1 year, 4 months ago

CBSE > Class 12 > Economics

0 answers

Economics project on function of RBI

Posted by Mehar Ansari 1 year, 5 months ago

CBSE > Class 12 > Economics

0 answers

Is inclusive growth Achievable for a developing country like India when exposed to the process of privatisation and globalization

Posted by Niangmuankim Vaiphei 1 year, 4 months ago

CBSE > Class 12 > Economics

0 answers

Economic Reforms Since 1991 notes

Posted by Dipika Sharma 1 year, 4 months ago

CBSE > Class 12 > Economics

0 answers

myCBSEguide App

myCBSEguide

Trusted by 1 Crore+ Students

Test Generator

Test Generator

Create papers online. It's FREE.

CUET Mock Tests

CUET Mock Tests

75,000+ questions to practice only on myCBSEguide app

Google Play

Download myCBSEguide App