### Law of Equi-Marginal Utility

This law states that the consumer maximizing his total utility will allocate his income among various commodities in such a way that his marginal utility of the last rupee spent on each commodity is equal
Or
The consumer will spend his money income on different goods in such a way that marginal utility of each good is proportional to its price
Explanation

yet to write

Limitations of Law of Equi-Marginal Utility
• It is difficult for the consumer to know the marginal utilities from different commodities because utility cannot be measured.
• Consumer are ignorant and therefore are not in a position to arrive at an equilibrium.
• It does not apply to indivisible and inexpensive commodity.

good for introduction only

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saroj kumar said...

This information is enough for introduction.

Anonymous said...

Want satisfy wid dis.. Gv sm xamples

Manuj Seth said...

Good..
Thanks

Anonymous said...