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Explain the consumer equilibrium in case of two commodities with help of utility approach

Answer» In case of two commodities the ratio between MUx and Px and the ratio between MUy and Py is suitable which is symbollically MUx/Px = MUy/PyThis condition is suitable when the equation of budget line Px.Qx+Py.Qy=M is equal to the income of consumer.


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