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    • Question

      In a situation when MRS>Px/Py, the consumer would

      react by:
      A Diminishing the consumption of commodity-x Correct Answer Incorrect Answer
      B Increasing the consumption of commodity-y Correct Answer Incorrect Answer
      C Increasing the consumption of commodity-x Correct Answer Incorrect Answer
      D Decrease the consumption of commodity-y Correct Answer Incorrect Answer

      Solution

      Consumer should increase the consumption of good x so that the MRSxy goes down and the equilibrium can achieve.

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