Sandeep Garg Macroeconomics Class 12 Chapter 4 | Solutions

Since MRS > price ratio, the consumer is not in equilibrium.

[Diagram: Budget line and indifference curve] sandeep garg macroeconomics class 12 chapter 4 solutions

Ed = (∆Q / Q) / (∆P / P)

A consumer has a budget of ₹ 100 to spend on two goods, X and Y. The price of good X is ₹ 10 and the price of good Y is ₹ 20. If the consumer buys 5 units of good X and 3 units of good Y, is the consumer in equilibrium? Explain. Since MRS > price ratio, the consumer is

[Diagram: Consumer's surplus]