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Questions and Answers
In consumer equilibrium, what relationship should hold between the marginal utility of the commodity and its price?
In consumer equilibrium, what relationship should hold between the marginal utility of the commodity and its price?
- MUx (in ₹) = Px (in ₹) (correct)
- MUx (in utils) = Px (in utils)
- MUx (in ₹) = Px (in utils)
- MUx (in utils) = Px (in ₹)
What is the condition for consumer equilibrium in case of a single commodity?
What is the condition for consumer equilibrium in case of a single commodity?
- Marginal utility of the commodity equals its price in rupees (correct)
- Total utility of the commodity equals its price in rupees
- Total utility of the commodity equals its price in utils
- Marginal utility of the commodity equals its price in utils
What is the significance of MU of Money (₹) in consumer equilibrium?
What is the significance of MU of Money (₹) in consumer equilibrium?
- It represents the total utility derived from the commodity
- It represents the total utility derived from money
- It represents the price of the commodity in terms of money
- It represents the marginal utility of money in terms of rupees (correct)
