Consumer attains equilibrium when he maximises his utility, given his income and market prices of two products of
(I) Marginal rate of substitution be equal to the ratio of commodity prices i.e.
MRSxy = MUx/MUy = Px/Py
(II) Indifference curve is convex to the origin.
| A. | Only (I) is true |
| B. | Both (I) and (II) are true |
| C. | Only (II) is true |
| D. | Neither (I) nor (II) is true |
Answer : A Explanation : |
|
|
Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
