Question

Ques:
Conditions of consumer's Equilibrium.?​

Answer 1

Answer:

The solution to the consumer's problem, which entails decisions about how much the consumer will consume of a number of goods and services, is referred to as consumer equilibrium. This condition states that the marginal utility per dollar spent on good 1 must equal the marginal utility per dollar spent on good 2.

Answer 2

Explanation:

There are three conditions for consumer’s equilibrium:

There are three conditions for consumer’s equilibrium:(1) The Budget line should be Tangent to the Indifference Curve.

There are three conditions for consumer’s equilibrium:(1) The Budget line should be Tangent to the Indifference Curve. (2) At the point of Equilibrium the Slope of the Indifference Curve and of the Budget Line should be the same.

There are three conditions for consumer’s equilibrium:(1) The Budget line should be Tangent to the Indifference Curve. (2) At the point of Equilibrium the Slope of the Indifference Curve and of the Budget Line should be the same. (3) Indifference curve should be Convex to the Origin.