Sipho consumes two goods A and B. P A and P B , MU A and MU B and TU A and TU B represent prices, marginal utility and total utility of A and B, respectively. When will Sipho achieve consumer equilibrium?

Question

Sipho consumes two goods A and B. P A  and P B , MU A  and MU B  and TU A  and TU B  represent prices, marginal utility and total utility of A and B, respectively. When will Sipho achieve consumer equilibrium?

Answer

the total utilities of the two goods are equal

Answer

TU A /P A  = TU B /P B

Answer

when the ratio between P A  and P B  differs from the ratio between MU A  and MU B

Answer

MU A /MU B  = P A /P B

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Sipho consumes two goods A and B. P A and P B , MU A and MU B and TU A and T...

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