After reaching the point of equilibrium, consumer would not like to change his allocation of expenditure on Goods X and Y ever if price of Good X changes. Do you agree ? Comment

After reaching the point of equilibrium, consumer would not like to ch

1.	After reaching the point of equilibrium, consumer would not like to change his allocation of expenditure on Goods X and Y ever if price of Good X changes. Do you agree ? Comment
Answer» <html><body><p></p>Solution :No, I do not agree with the <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> statement. A consumer achieves equilibrium when `(MU_(X))/(P_(X)) = (MU_(Y))/(P_(Y))` <br/> Now, if price of Good `X (P_(x))` charges, then the equilibrium condition will be disturbed. <br/> In case `P_(x)` increase, `(MU_(X))/(P_(X)) lt (MU_(Y))/(P_(Y))`. This <a href="https://interviewquestions.tuteehub.com/tag/would-3285927" style="font-weight:bold;" target="_blank" title="Click to know more about WOULD">WOULD</a> <a href="https://interviewquestions.tuteehub.com/tag/induce-499186" style="font-weight:bold;" target="_blank" title="Click to know more about INDUCE">INDUCE</a> the consumer to buy more of Y in <a href="https://interviewquestions.tuteehub.com/tag/place-1155224" style="font-weight:bold;" target="_blank" title="Click to know more about PLACE">PLACE</a> of X. <br/> In case `P_(x)` decrease, `(MU_(X))/(P_(X)) <a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> (MU_(Y))/(P_(Y))`. This would induce the consumer to buy more of X in place of Y.</body></html>