A consumer consumes only two goods, each priced at Rupee one per unit. If the consumer chooses a combination of the two goods with marginal rate of substitution equal to 2, is the consumer at equilibrium? Give reasons. Explain what a rational consumer would do in this situation.
A consumer consumes only two goods. Explain the conditions of consumer's equilibrium with the help of the Utility Analysis.
A consumer consumes only two goods. For the consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods? Explain.
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A consumer consumes only two goods. Why is the consumer in equilibrium when he buys only that combination of the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.
Explain when a consumer, consuming only two commodities X and Y, attains equilibrium under the utility approach.
A consumer consumes only two goods X and Y whose prices are Rs. 2 and Rs. 1 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X being 4 and that of Y being 4, is the consumer in equilibrium? Give reasons. Explain what a rational consumer would do in this situation. Use marginal utility analysis.