Question

explain consumer's equilibrium in one commodity case answer for 5 marks​

Answer 1

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here is the 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. The number of units to be consumed of the given commodity by a consumer depends on 2 factors.

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Answer 2

Explanation:

The law of D.M.V can be used to explain consumers equilibrium in case of a

single commodity. Therefore, all the 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. The number of units to be consumed of the given commodity by a consumer depends on 2 factors.

assumptions of Law of D.M.U are taken as assumptions of consumer's equilibrium in case of single commodity.

Price of the given commodity. 2. Expected utility from each successive unit.

To determine the equilibrium point, consumer compare the price of the given commodity with its utility ..

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