Question

discuss the consumer equilibrium with the help of budget line and indifference curve​

Answer 1

Answer:

As budget line can be tangent to one and only one indifference curve, consumer maximizes his satisfaction at point E, when both the conditions of consumer's equilibrium are satisfied: (i) MRS = Ratio of prices or PX/PY: ADVERTISEMENTS: ... So, equilibrium is established at point E, when MRSXY = PX/PY.