Question

Explain the conditions of consumers equilibrium with the help of a diagram

Answer 1

Explanation:

A rational consumer will purchase a commodity up to the point where price of the commodity is equal to the marginal utility obtained from the thing. ... If this condition is not fulfilled the consumer will either purchase more or less.

Answer 2

Answer:

Explanation:

The following are the conditions for consumer's equilibrium:

• The Budget line should be Tangent to the Indifference Curve.

• At the point of Equilibrium the Slope of the Indifference Curve and of the Budget Line should be the same.

• Indifference curve should be Convex to the Origin