Explain consumers equilibrium in case of single commodity with the help of utility schedule in evonomics?
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5
Heya....
Consumer equilibrium is the state of maximum satisfaction....
Equilibrium in single commodity case depends on three factors...
"" Marginal Utility of commodity..
"" Marginal Utility of money....
"" Own price of the commodity....
When,,, MUx/Px = MUm ,,, then Equilibrium strucks.....
'''' Utility schedule said to be table of Utility analysis...
As Px is 4
As MU is 8
As MUm is 2 ...
Now,, 8/4 = 2....
-- Be Brainly....
Consumer equilibrium is the state of maximum satisfaction....
Equilibrium in single commodity case depends on three factors...
"" Marginal Utility of commodity..
"" Marginal Utility of money....
"" Own price of the commodity....
When,,, MUx/Px = MUm ,,, then Equilibrium strucks.....
'''' Utility schedule said to be table of Utility analysis...
As Px is 4
As MU is 8
As MUm is 2 ...
Now,, 8/4 = 2....
-- Be Brainly....
Answered by
1
Explain consumers equilibrium, in case of Single commodity, with the help of utility schedule. ... To determine the equilibrium point, consumer compare the price of the given commodity with its utility. Being a rational consumer, he will be at equilibrium when marginal utility is equal to price paid for the commodity.
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