jnu quest

[SoniaKapoor]

m confused btw a and b...pls help

[Dreyfus]

MUX/PX=16/13=1.23
Muy/py=13/11=1.18
MUX/PX>muy/py
Only x will be consumed!

[Anjali]

Only X

[SoniaKapoor]

I'm not getting.Kindly explain.

[mrittik]

just think about 2 lines and the property of perfect substitutes.....the slope of utility curve is 16/13=1.23....now the budget line has a slope of 13/11=1.18....so the budget line is flatter than the utility curve...so only X is consumed.