Question

Using the indifference curve approach, explain the condition of consumer’s

equilibrium​

Answer 1

Explanation:

Consumer's Equilibrium through Indifference Curve. According to indifference curve approach, a consumer attains equilibrium under two conditions: (i) When marginal rate of substition is equal to ratio of prices of two goods i.e., MRSxy = Px/Py. ... At equilibrium point consumer maximises his satisfaction