can anyone explain the concept of equilibrium
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Heya....
Equilibrium is the state of maximum satisfaction.....
Consumer equilibrium struck when :...
Cardinal aspect
In one commodity case...
When MUx/ Px= Mum.....
In two commodities case....
When MUy / Py= MUx / Px =Mum....
Ordinal aspect....
When the price at which consumer is willing to subsitute a good is coincide with price at which market allows to subsitute....
Equilibrium is the state of maximum satisfaction.....
Consumer equilibrium struck when :...
Cardinal aspect
In one commodity case...
When MUx/ Px= Mum.....
In two commodities case....
When MUy / Py= MUx / Px =Mum....
Ordinal aspect....
When the price at which consumer is willing to subsitute a good is coincide with price at which market allows to subsitute....
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