Question

How is consumer equilibrium indifference curve analysisdetermined?

Answer 1

Heya user ✨✨

Assumption Of Analysis Of Consumer Equilibrium ⏬⏬

⏺️ Money income of the consumer is given and does not change.

⏺️The consumer spend his income on two good which are substitute of each other.

⏺️The consumer preference for the too good is well defined.

⏺️More of a good always give more satisfaction to the consumer.This is called monotonic preference for a good.

⏺️The consumer is rational he always tries to maximize his satisfaction in a given situation.


✨Hope this helps you ✨

Answer 2

$\huge\mathfrak\red{Bonjour\:Mate}$

$\huge\boxed{Answer}$______✌✌

♠️Consumer Equilibrium in terms of Indifference Curve Analysis. ... As the consumer is assumed to behave rationally, he wants to reach the highest possible indifference curve. His aim is to maximise his utility. But he is constrained by his income and prices of goods X and Y.