In a situation when MRSxy > Px / Py, the consumer would react by: Option 1: Decreasing the consumption of Good X. Option 2: Increasing the consumption of Good Y. Option 3: Increasing the consumption of Good X. Option 4: Decreasing the consumption of Good Y.

The answer is 'Increasing the consumption of Good X.'. View full solution:

CUET Economics - In a situation when MRSxy > Px / Py, the consumer would react by: | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Micro

Easy

Decreasing the consumption of Good X.

Increasing the consumption of Good Y.

Increasing the consumption of Good X.

Decreasing the consumption of Good Y.

✅ Correct Option: 3

Related questions:

14 May Shift 1

Arrange the following statements related to the change in demand for normal good.

(A) The consumer's income, increases.

(B) Given the prices of other goods and the preferences of the consumer,

(D) The demand for the normal good at given price changes.

28 May Shift 1

Why indifference curves are convex to origin?

15 May Shift 1

Which of the following indicates a situation of consumer's equilibrium for a rational consumer consuming two goods?