A consumer strikes his equilibrium when: $MRS _{ xy }=\frac{ P _{ x }}{ P _{ Y }}$.
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Answer
True. In terms of indifference curve approach, a consumer strikes his equilibrium when: Slope of IC Slope of Price Line Or $MRS _{x y}=\frac{ P _x}{ P _\gamma}$ It is here only that the consumer maximises his satisfaction (given $P _{ X }$, $P _{ Y }$ and income of the consumer).
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