Explain consumer equilibrium in case of single commodity?

1.	Explain consumer equilibrium in case of single commodity?
Answer» The consumer will be in equilibrium in case of single commodity when following condition is satisfied:\t{tex}\\frac { \\mathrm { MUx } } { \\mathrm { Px } }{/tex}\xa0= MUm\tWhere, MUx= Marginal utility of good X\tPx = Price of good X\tMUm= Marginal utility of money\tLaw of Diminishing Marginal utility (means consumption increases the marginalutility derived from each additional unit declines) must prevail.

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