Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

In case of equilibrium, MU= 50 and MUY = 100 Px = 25 then what will be the value of PY?

Options:

12.5

50

100

25

Correct Answer:

50

Explanation:

The equilibrium condition is as follows:

\(\frac{MU_x}{ P_x}\) = \(\frac{MU_y}{ P_y}\) 

\(\frac{ 50}{ 25}\) = \(\frac{100 }{P_y }\)

2 = \(\frac{100 }{P_y }\)

P= \(\frac{ 100}{ 2}\)

Py = 50