Question

How does a consumer reach equilibrium position when he is buying only one commodity? Explain with the help of marginal utility schedule(important ).

Answer 1

The term ‘equilibrium’ is frequently used in economic analysis. Equilibrium means a state of rest or a position of no change. It refers to a position of rest, which provides the maximum benefit or gain under a given situation. A consumer is said to be in equilibrium, when he does not intend to change his level of consumption, i.e., when he derives maximum satisfaction.