Economics 11 explain consumer eqilibrium in case for of singal commodity with the help of schedule to utility]
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Heya....
Consumer equilibrium means the point of maximum satisfaction when consumer is spending his income across different goods with prices ...
In single commodity case equilibrium struck on basis on three factors...
* Marginal Utility of commodity..
* Price of the commodity...
* Marginal Utility of money...
Means... MUx / Px = Mum....
Schedule :))))))
MUx is 6
Px is 3
Money satisfaction is 2...
So 6/3 = 2 and Mum is also 2...
So equilibrium is struck here...
Consumer equilibrium means the point of maximum satisfaction when consumer is spending his income across different goods with prices ...
In single commodity case equilibrium struck on basis on three factors...
* Marginal Utility of commodity..
* Price of the commodity...
* Marginal Utility of money...
Means... MUx / Px = Mum....
Schedule :))))))
MUx is 6
Px is 3
Money satisfaction is 2...
So 6/3 = 2 and Mum is also 2...
So equilibrium is struck here...
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The state of balance obtained by an end-user of products that refers to the number of goods and services they can buy given their existing level of income and the prevailing level of cost prices.
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