Question

Consumer equilibrium utility analysis

Consumer purchasing 2 goods X and Y is said to be in equilibrium. If price of good X increases what will be the consumers reaction to this change in the market?
I need proper explanation otherwise I will report you.

Answer 1

Explanation:

When a consumer is purchasing one com­modity, he stops buying when its price and utility have been equated.

At this point, his total utility is the maximum. He is said to be in equilibrium at this point, because he is getting maximum satisfaction and he will buy neither more nor less.