Re: DSE 2009

Posted by ritu on Feb 23, 2012; 1:48pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp7296495p7311866.html

but i think in case of perfect substitutes he can be better of....because of additive utility.....he will spend all his income on x plus he gets wot govt gives him of y....how do we incorporate price considerations..if px<py...then utility is x+y*
if px>py then utility is m/py+y* but wot if px=py?..wot do u think abt it?????