Question

Example of Consumer equilibrium in case of two commodity with table and diagram.
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Answer 1

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Consumer Equilibrium, IN Case OF TWO Commodity. Suppose, a consumer consumes only two goods X and Y. He will attain equilibrium only if he allocates his given income on purchase of good X and Y in such a way that per rupee MU of both the products is equal and he gets maximum TU.








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Answer 2

In the diagram, OO1 represents the total income of a consumer. MUx and MUy represent the Marginal Utility curves of commodity X and commodity Y, respectively. ... That is, in other words, when he reaches point E, where the equilibrium is restored by the equality between the marginal Utilities of each commodity