explain consumer equilibrium in case of single as well as double commodity
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Explanation:
Consumer Equilibrium in the Case of a Two- Commodity Model
Suppose a consumer consumes only two goods, X and Y. They will attain equilibrium only if they allocate their given income on the purchase of X and Y in such a way that per rupee, the MU of both the products are equal and the consumer gets the maximum TU.
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Answer: A consumer purchasing a single commodity will be at equilibrium when he is buying such a quantity of that commodity, which gives him maximum satisfaction. ... Being a rational consumer, he will be at equilibrium when marginal utility is equal to the price paid for the commodity.
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