Question

Difference between consumer equilibrium and producer equilibrium

Answer 1

Consumer equilibrium

1. It is the state of balance achieved by an end user of products or the consumers.

2. It refers to the amount of goods and services the consumers can buy within their current income and prices.

3. It enables the consumer to get the maximum satisfaction from his income.

Producer equilibrium

1. It is a state of rest when no change is required in the production.

2. A firm or producer has not inclination to expand or contract its output.

3. There are maximum profits or minimum losses.

Answer 2

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Consumer equilibrium

In this type of equilibrium a balanced state achieved as regard to the consumer . maximum satisfaction from income can be get by the consumer by this.

Producer equilibrium:

Firm or organization neither can expand nor contract the outputs.in which There are maximum profits or minimum losses. No change can be happen in this type of equilibrium