A consumer strikes his equilibrium when- MUXPX - MUM in case of two commodities-

The correct option is B FalseWhen consumer consumes #10;two commodities, then equilibrium is achieved when consumer equates the ratio #10;of marginal utili ...

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Standard VIII

Mathematics

Variation

A consumer st...

Question

A consumer strikes his equilibrium when: $\frac{M U_{X}}{P_{X}} = M U_{M}$ in case of two commodities.

True

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False

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Solution

The correct option is B False
When consumer consumes two commodities, then equilibrium is achieved when consumer equates the ratio of marginal utility derived from one commodity in comparison to it's price with the ratio of the marginal utility of another commodity in comparison to it's price.

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Similar questions

Q.
A consumer strikes his equilibrium when

M U_{X} = M U_{Y} = M U_{M}

, in case of two commodities, and when

P_{X}

and

P_{Y}

are not equal.

Write true or false with a reason:

A consumer strikes his equilibrium when:

M R S_{X Y} = \frac{P X}{P Y}

MRSXY=PXPY.

A consumer, Mr. Aman is in state of equilibrium consuming two goods X and Y, with given

prices Px and Py. Explain what will happen if:

a. MUx / Px is greater than MUy / Py.

b. Py falls

Q. If the consumer consumes only one commodity 'X', he will be in equilibrium when _________.
[Here,

M U_{X} =

Marginal utility of the Good

- X

(in terms of money);

P_{X} =

Price of Good

- X

Q. Explain the economic value of the following equation,

\frac{M U_{X}}{P_{X}} = M U_{M}

when X happens to be a domestic fuel (LPG) and

P_{X}

is lowered by way of subsidy by the government.

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A consumer strikes his equilibrium when: MUXPX=MUM in case of two commodities.

The correct option is B FalseWhen consumer consumes two commodities, then equilibrium is achieved when consumer equates the ratio of marginal utility derived from one commodity in comparison to it's price with the ratio of the marginal utility of another commodity in comparison to it's price.

A consumer strikes his equilibrium when: $\frac{M U_{X}}{P_{X}} = M U_{M}$ in case of two commodities.

The correct option is B False
When consumer consumes two commodities, then equilibrium is achieved when consumer equates the ratio of marginal utility derived from one commodity in comparison to it's price with the ratio of the marginal utility of another commodity in comparison to it's price.