Question

Consumer equilibrium through indifference curve analysis is based on *

Answer 1

Answer:

Consumer equilibrium refers to a situation, in which a consumer derives maximum satisfaction, with no intention to change it and subject to given prices and his given income. The point of maximum satisfaction is achieved by studying indifference map and budget line together.

Explanation:

First order and Second order condition for consumer Equilibrium Thus the consumer's equilibrium under the indifference curve theory must meet the following two conditions: First order condition : A given price line should be tangent to an indifference curve or marginal rate of satisfaction of good X for good Y

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Answer 2

Answer:

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