A consumer spends all his income of Rs 6000 on two goods - Food and clothing and is buying 12 units each of both the goods. At the present level of…
CUET UG 2025 — Economics Micro
A consumer spends all his income of Rs 6000 on two goods - Food and clothing and is buying 12 units each of both the goods. At the present level of consumption, the marginal rate of substitution of clothing for food is 3. The price of food per unit is Rs. 400 whereas that of clothing is Rs. 100. What should a consumer do to attain the equilibrium?
Held on 26 May 2025 · Verified 13 Jul 2026.
Options
- A
He should reduce the consumption of food and increase the consumption of clothing.
- B
He should increase the consumption of food and reduce the consumption of clothing.
- C
He should reduce the consumption of both the goods.
- D
He shouldn't change his consumption level as he is already at equilibrium.
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