why should consumer's equilibrium point be located on the budget line ?
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Consumer is supposed to have complete knowledge of (his/her) choices through indifference map. The price line is obtained with prices of goods of consumer's choice.
Under these assumptions, the equilibrium is explained as any combination of choice with the highest possible indifference curve on the indifference map. Tangential point of the budget line presumes that there can only be one choice (highly debatable) on an indifference curve among the same set of curves on the indifference map. Any other point which may lie on a higher indifference curve is beyond the purchasing power with his given income. And any other point lying below tangential point presents sub equilibrium levels of satisfaction.
Under these assumptions, the equilibrium is explained as any combination of choice with the highest possible indifference curve on the indifference map. Tangential point of the budget line presumes that there can only be one choice (highly debatable) on an indifference curve among the same set of curves on the indifference map. Any other point which may lie on a higher indifference curve is beyond the purchasing power with his given income. And any other point lying below tangential point presents sub equilibrium levels of satisfaction.
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