Question

If MU_Y = 20; MU_X = 60; Price of Y = ₹ 4, then what will be the Price of X at Equilibrium ______.

Options

• ₹ 14

• ₹ 3

• ₹ 12

• ₹ 4

Answer 1

If MU_Y = 20; MU_X = 60; Price of Y = ₹ 4, then what will be the Price of X at Equilibrium ₹ 12.

Explanation:

\[ \frac{MU_X}{P_X}=\frac{MU_Y}{P_Y} \]

\[ \frac{60}{P_X}=\frac{20}{4} \]

\[ P_X=\frac{60\times4}{20} \]

\[ P_X=\frac{240}{20}=₹12 \]

The price of X at equilibrium will be ₹ 12.