Question

does any one tell what consumer equilibrium ​

Answer 1

The state of balance achieved by an end user of products that refers to the amount of goods and services they can purchase given their present level of income and the current level of prices. Consumer equilibrium allows a consumer to obtain the most satisfaction possible from their income.

Answer 2

There is a defined indifference map showing the consumer’s scale of preferences across different combinations of two goods X and Y.

The consumer has a fixed money income and wants to spend it completely on the goods X and Y.

The prices of the goods X and Y are fixed for the consumer.

The goods are homogenous and divisible.

The consumer acts rationally and maximizes his satisfaction.

Consumers Equilibrium

In order to display the combination of two goods X and Y, that the consumer buys to be in equilibrium, let’s bring his indifference curves and budget line together.

We know that,

Indifference Map – shows the consumer’s preference scale between various combinations of two goods

Budget Line – depicts various combinations that he can afford to buy with his money income and prices of both the goods.