Question

explain second part of consumer equilibrium​

Answer 1

Answer:

What is the Definition of Consumer Equilibrium?

Consumer equilibrium is a point at which a consumer's derived utility from a commodity is at its maximum, given a fixed level of income and price of that commodity. A rational consumer would not deviate from this point.

Answer 2

Answer:

Consumers derive utility from each commodity they consume. This utility is dependent on the price of a product. The point at which the marginal utility (MU) of a product equals its price (P) is where consumer satisfaction maximises. It is expressed as MU = P. If the marginal utility of a product is higher than the price a consumer would continue to purchase additional units and vice versa until MU equals the fixed price level.