Home
Class 11
ECONOMICS
A consumer consumes only two goods X and...

A consumer consumes only two goods X and Y whoose 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 also being 4, is the comsumer in equilibrium ? Give reason. Explain what will a rational consumer do in this situation. Use Marginal Utility Analysis.

Promotional Banner

Topper's Solved these Questions

  • CONSUMER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Practicals on TU and MU|9 Videos

  • CONSUMER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Revision Exercise|64 Videos

  • CONSUMER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Short Answer type questions|29 Videos

  • COST

    SANDEEP GARG|Exercise Unsolved Practicals|42 Videos

Similar Questions

Explore conceptually related problems

A consumer consumes only two goods X and Y whose prices are Rs.5 and Rs.4 respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 4 and that of Y equal to 5, is the consumer in equilibrium ? Why or why not what will a rational consumer do in this situation ? Use utility analysis.

SANDEEP GARG-CONSUMER'S EQUILIBRIUM-Long Answer type question
  1. Explain consumer's equilibrium, in case of a single commodity, with th...

    Text Solution

    |

  2. A consumer consumes only two good. Explain equilibrium with the help o...

    Text Solution

    |

  3. Explain the conditions of consumer's equilibrium in case of (i) single...

    Text Solution

    |

  4. A consumer consumes only two goods X and Y, both priced at Rs 2 per un...

    Text Solution

    |

  5. A consumer consumes only two goods X and Y whoose prices are Rs 2 and ...

    Text Solution

    |

  6. Explain the following : (a) why is an indifference curve convex to the...

    Text Solution

    |

  7. State and explain the characteristics of indifference curve.

    Text Solution

    |

  8. What are monotonic preferences ? Explain why is an indifference curve:...

    Text Solution

    |

  9. Explain the concepts of (i) marginal rate of substitution and (ii) bud...

    Text Solution

    |

  10. Explain the concept of Marginal Rate of Substitution and its behaviour...

    Text Solution

    |

  11. A consumer consumes only two goods X and Y and is in equilibrium. Pric...

    Text Solution

    |

  12. A consumer consumes only two goods X and Y and is in equilibrium. Pric...

    Text Solution

    |

  13. Explain the distinction between budget set and budget line. When can a...

    Text Solution

    |

  14. Show diagrammatically the conditions for consumer's equilibrium in Hic...

    Text Solution

    |

  15. A consumer spends his entire income on two goods: X and Y. Currently h...

    Text Solution

    |

  16. Define budget line and indifference cuve. Also explain why the two are...

    Text Solution

    |

  17. A consumer, Mr. Aman is in state of equilibrium consuming two goods X ...

    Text Solution

    |