Question

State the conditions of equilibrium of a consumer when a consumer consumes one good Under ordinal utility theory​

Answer 1

Answer:

The state at which a consumer derives maximum utility from the consumption of one or more goods and services given his/her level of income is called consumer’s equilibrium. At that level of balance between total utility and income, the marginal utility of a product is equal to its one unit price.

Answer 2

Explanation:

The ordinal approach defines two conditions of consumer equilibrium: Necessary or First Order Condition and Supplementary or Second Order Condition.