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| 1. |
If (MU_(X))/(P_(X)) gt (MU_(Y))/(P_(Y)), then the consumer should buy more of commodity Y and less of commodity X to reach the equilibrium position |
| Answer» SOLUTION :Consumer should buy more of commodity X as MARGINAL UTILITY (MU) from last rupee spent on commodity X is greater than MU from last rupee spent on commodity Y. | |