Question

How does a consumer reach the equilibrium position

Answer 1

consumer equilibrium. The state of balance achieved by an end user of products that refers to the amount of goods and services they can purchase given their present level of income and the current level of prices. Consumer equilibrium allows a consumer to obtain the most satisfaction possible from their income.

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Answer 2

When a consumer is purchasing one com­modity , he stops buying when its price and utility have been equated.

Meaning the marginal utility is equal to the price.

At this point, his total utility is the maximum.

He is said to be in equilibrium at this point, because he is getting maximum satisfaction and he will buy neither more nor less