Consumer Equilibrium | Class 11 Notes Free [hot]

A consumer buys a good until Marginal Utility (MU) = Price (P) .

A consumer is in equilibrium at the point where the Budget Line is to the Indifference Curve. Necessary Conditions: consumer equilibrium class 11 notes free

Buy 3 units of X (spend ₹12) and 6 units of Y (spend ₹12). At this point, ( MU_x / P_x = MU_y / P_y = 3 ). A consumer buys a good until Marginal Utility

The total satisfaction derived from consuming all units of a commodity. Marginal Utility (MU): consumer equilibrium class 11 notes free

Depending on the theory, utility is either measurable in numbers (Utils) or rankable (Preferences). 2. The Utility Approach (Cardinal Utility)