Q. 15.0( 2 Votes )

A consumer consum

Answer :

Let the Marginal utility for good X = MUx

Marginal utility for good Y = MUy

Price of good X = Px

Price of good Y = Py

According to Utility analysis, consumer is in equilibrium when

Where, MUm = Marginal Utility of money

Now, Px falls,

And when Py falls,

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