Re: ISI 2004

Posted by aditi5000 on May 10, 2012; 3:51pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2004-tp7546868p7547193.html

MU from both goods starts declining after x=6 and y=8 ie DMU sets in. Thus, Rs 50 (6*3+ 4*8) is the optimal income level. If income increases beyond this, consumption of x and y will not increase