Question

Explain consumers equilibrium with the help of indifference curve analysis

Answer 1

Under indifference  curve analysis when the budget line of consumer is tangent to indifference curve and indifference curve is convex to origin consumer is in equilibrium   Slope of budget line =Px/Py Slope of indifference  curve= MRS  So when MRS=Px/Py and IC convex to origin consumer  is in equilibrium