CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

When the price of onions is very high, the poor man simply stops buying it. Explain the economics of it, using utility analysis.

Open in App
Solution

A consumer buys a commodity only when a rupee spent on it gives rupee worth of satisfaction (MUM). A poor man stops the consumption of onion when he finds that a rupee spent on it does not give rupee worth of satisfaction (no matter what quantity of onions is purchased), so that, MUXPX<MUM.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Demand Shifters
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon