MU of Good X is 10 and MU of Good Y is 15. If the price of Good Y is Rs.3, then what will be the Price of Good X at equilibrium?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: 2
The equilibrium condition of 2 case commodity is:
\(\frac{ Mux}{Px }\) = \(\frac{Muy }{ Py}\)
10/Px =15/3
Px =30/15 = 2