What is meant by consumer equilibrium explain its condition in case of single commodity?
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Consumer Equilibrium In Case of a Single Commodity – Utility Analysis. Consumer's equilibrium is a situation when he spends his given income on the purchase of one or more commodities in such a way that he gets maximum satisfaction and has no urge to change this level of consumption, given the prices of commodities.
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Explanation:
A consumer is said to be in equilibrium in one commodity case when he gets maximum satisfaction by exhausting his total money income. MUX = PX.
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