Question

consumer consumes only two goods. Explain the conditions that need to be satisfied

for the consumer to be in equilibrium under indifference curve analysis.​

Answer 1

Answer:

induces the consumer to buys less of X and more of Y. ... The second condition for consumer's equilibrium is that MRS must be diminishing at the point of equilibrium, i.e. the indifference curve must be convex to the origin at the point of equilibrium.