Explain consumer equilibrium in case of single commodity with the help

1.	Explain consumer equilibrium in case of single commodity with the help of utility schedule
Answer» Hey there! ---------- *Consumer's EQUILIBRIUM* refers to a situation in which a consumer gets maximum satisfaction and he has no tendency to bring about any CHANGE in his pattern of consumption. Condition of consumer's equilibrium -: Consumer's equilibrium with respect to purchase of ONE GOOD is attained when the marginal utility of the good is equal to its price. Example -: Suppose a consumer is buying orange and the price of each unit of orange is Rs. 4. ___________________ Refer the attachment . ___________________ It is evident from he schedule that the consumer will purchase 4 oranges and reaches an equilibrium position. In this situation, the condition of CONSUMERS's equilibrium $MU_{X}$ (in Rs.) = P is satisfied. At this level of consumption, the marginal utility is equal to the price of orange, i.e., 4 = 4.

Explain consumer equilibrium in case of single commodity with the help of utility schedule

Answer»

Hey there!

----------

Consumer's EQUILIBRIUM refers to a situation in which a consumer gets maximum satisfaction and he has no tendency to bring about any CHANGE in his pattern of consumption.

Condition of consumer's equilibrium -: Consumer's equilibrium with respect to purchase of ONE GOOD is attained when the marginal utility of the good is equal to its price.

Example -: Suppose a consumer is buying orange and the price of each unit of orange is Rs. 4.

___________________

Refer the attachment .

___________________

It is evident from he schedule that the consumer will purchase 4 oranges and reaches an equilibrium position. In this situation, the condition of CONSUMERS's equilibrium $MU_{X}$ (in Rs.) = P is satisfied. At this level of consumption, the marginal utility is equal to the price of orange, i.e., 4 = 4.

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