Question

Which of these is a condition for consumer’s equilibrium by indifference curve analysis?

विकल्प

• MU_X = P_X

• `(MU_X)/P_X = (MU_Y)/P_Y`

• `MRS_X = P_X/P_Y`

• MU_X = MU_Y

Answer 1

`MRS_X = P_X/P_Y`

Explanation:

Indifference curve equilibrium requires MRS to equal the price ratio, with diminishing MRS for stability. The other conditions belong to, or do not correctly state, cardinal utility equilibrium.