Question

Consumers equilibrium by utility approach in one commodity case microeconomics

Answer 1

consumer wants to allocate his money income between the two goods to attain the equilibrium position.

In case of consumer equilibrium under single commodity, we assumed that the entire income was spent on a single commodity.


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Answer 2

Consumer's Equilibrium refers to the situation when a consumer is having maximum satisfaction with limited income and has no tendency to change his way of existing expenditure.


The consumer has to pay a price for each unit of the commodity. So, he cannot buy or consume unlimited quantity.


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