State and explain the condition of consumer equilibrium when consumer consumes 2 gooda
Answers
We buy a variety of goods and services in our day to day life and derive satisfaction from its consumption and use. Thus we all are consumers, and as a consumer, we expect a certain value for money, that is, right quality, right quantity, right prices, information about the product, etc.
However, in the present day, we end up being harassed and cheated by market giants very often.
In early days, unfair trade was almost impossible with limited wants and a conservative style of living. However, today, with increased industrial revolution, liberalisation and globalisation, our wants have increased manifold and this has given plenty of scope for malpractices.
There are many ways by which consumers are exploited. A few of them are:
A. Selling at higher prices -- The price charged for the product will not be proportionate to the quality;
B. Product risk -- Drugs that are hazardous, banned or beyond expiry date, electrical appliances with inadequate safety precautions, etc;