Consumer equilibrium using IC Analysis

1.	Consumer equilibrium using IC Analysis
Answer» Consumer Equilibrium-consumer equilibrium refers to a situation when a consumer having maximum satisfaction with his limited income and has no tendency to change his way of existing expenditureAssumptions-1)both goods are substituted goods2)consumer income and price of commodity are given3)consumer will be rational4)law of DMU will be held5)utility will be measured in orderCondition-1)MRSxy=Px÷PySlope of IC=Slope of budget line2)Ic is convex at equilibrium

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