Show that there is inverse relation between price of a commodity and its quantity demanded . UseUtility Analysis.

Show that there is inverse relation between price of a commodity and i

1.	Show that there is inverse relation between price of a commodity and its quantity demanded . UseUtility Analysis.
Answer» Solution :ASSUMING that the CONSUMER CONSUMES only two goods X andY and is in equilibrium. Then,`(MU_(x))/(P_(x))=(MU_(y))/(P_(y))` Now suppose Px FALLS ,then`(MU_(x))/(P_(x))gt(MU_(y))/(P_(y))` Since per rupee marginal utility of Xisgreater than per rupee marfinal utility of Y , the consumer will buymoreofX . Itshows inverse relation between price of X and DEMAND for X.