Question:
Suppose a consumer consumes two goods whose MRS = 3. If the price of one good is Rs 30, what is the price of the other good for the consumer to be in equilibrium?
Suppose a consumer consumes two goods whose MRS = 3. If the price of one good is Rs 30, what is the price of the other good for the consumer to be in equilibrium?
Updated On: Nov 4, 2024
- 10
- 30
- 60
- 90
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The Correct Option is A
Solution and Explanation
In consumer equilibrium, the ratio of prices equals the MRS, so the price of the second good is Rs 10.
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