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If (MU(X))/(P(X)) gt (MU(Y))/(P(Y)), the...

If `(MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y))`, then to reach the equilbrium position, consumer should

A

Stop buying any commodity

B

Buy both the commodities in equal quantity

C

Buy more of X and less of Y

D

Buy more of Y and less of X

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The correct Answer is:
C
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SANDEEP GARG-CONSUMER'S EQUILIBRIUM-Revision Exercise
  1. Indifference curves are :

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  2. Which of these is a conditions for consumer's equilibrium by indiffere...

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  3. If (MU(X))/(P(X)) gt (MU(Y))/(P(Y)), then to reach the equilbrium posi...

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  4. If the consumption of an additional unit of a commodity casues no chan...

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  5. An indifference curve is best described as a series of points which sh...

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  6. Total Utility is at the point of satiety:

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  7. Marginal Utility (MU) of n^(th) unit is calculated as:

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  8. In case of single commodity, consumer's equilibrium is achieved when:

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  9. measures the slope of indifference curve.

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  10. In the following diagram of budget line, point ''D'' represents :

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  11. How is TU derived from MU ?

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  12. What happends to MU when TU is maximum ?

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  13. An indifference curve always:

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  14. In case of cardinal utility approach, utility is measured in:

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  15. The consumer will be in equilibrium where there is tangency between pr...

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  16. 'Cardinality'' means utility can be:

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  17. The slope of price line (in case of commodites X and Y) is given by:

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  18. Which Law states that. ''When a consumer consumes more and more units ...

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  19. In the context of Indifference Curve Analysis, MRS stands for:

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  20. For consumer's equilibrium to be stable, the requirement is:

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