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» Solution :No, I do not agree with the GIVEN statement. A consumer achieves equilibrium when `(MU_(X))/(P_(X)) = (MU_(Y))/(P_(Y))` Now, if price of Good `X (P_(x))` charges, then the equilibrium condition will be disturbed. In case `P_(x)` increase, `(MU_(X))/(P_(X)) lt (MU_(Y))/(P_(Y))`. This WOULD INDUCE the consumer to buy more of Y in PLACE of X. In case `P_(x)` decrease, `(MU_(X))/(P_(X)) GT (MU_(Y))/(P_(Y))`. This would induce the consumer to buy more of X in place of Y.