Assertion (A): At equilibrium with two goods, the consumer buys equal quantities of both.
Reason (R): At equilibrium, MU per rupee is equal for both goods.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: with Pₓ = ₹4 and Pᵧ = ₹2, a consumer can well be in equilibrium buying 3 X and 4 Y, unequal quantities.
R is the true condition.

Concept: Equal quantities are not required
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsEquilibrium with two goods

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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Assertion (A): At equilibrium with two goods, the consumer buys equal quantities of both.Reason (R): At equilibrium, MU per rupee is equal for both goods.

Explanation

Assertion (A): At equilibrium with two goods, the consumer buys equal quantities of both.
Reason (R): At equilibrium, MU per rupee is equal for both goods.