What is the meaning of consumer’s equilibrium? – InterviewSolution

InterviewSolution

1.	What is the meaning of consumer’s equilibrium?
Answer» It is the state in which a consumer is said to be in equilibrium when he is buying such a combination of goods as leaves him with no tendency to rearrange his purchase of goods.

Discussion

No Comment Found

Related InterviewSolutions

Indifference means: (a) X is given preference on Y (b) Y is given preference on X (c) Both X and Y are similar preferences (d) None of these
Diminishing marginal utility principle propounded by : (a) Marshall (b) Gossen (c) pigou (d) Edgeworth
If the marginal utility of goods is negative then the total utility is : (a) declining (b) increasing (c) constant (d) zero
Utility in marginal utility theory is : (a) ordinal utility (b) cardinal utility (c) both (d) None of these
Define marginal rate of substitution.
Capacity of fulfillment of requirement of goods is called : (a) Productivity (b) Utility (c) Ability (d) Satisfaction
Write the mathematical form of budget line.
Prof. J.R. Hicks and Prof. J.D. Allen propounded the cardinal approach in the form of alternative analysis :(a) in 1934(b) in 1935(c) in 1835(d) in 1834
Attribute of utility is : (a) it changes from commodity to commodity (b) it changes from time to time (c) it changes from person to person (d) All of these
Why is indifference curve convex to origin?