Social Sciences, asked by manavpreet7402, 10 months ago

economics doubt - the number which we get during making shedule in consumer equilibrium is taken on what basis

Answers

Answered by aayush1203singh
1

The consumer equilibrium is found by comparing the marginal utility per dollar spent (the ratio of the marginal utility to the price of a good) for goods 1 and 2, subject to the constraint that the consumer does not exceed her budget of $5.

When a consumer is purchasing one commodity , he stops buying when its price and utility have been equated. Meaning the marginal utility is equal to the price. At this point, his total utility is the maximum. Equilibrium is a point where the quantity demanded is equal ti the quantity supplied with the constant price.

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