Consumer - Equilibrium Class 11 Notes

First, Rahul thinks, "I’m starving. I will only buy Samosas today."

Consumer equilibrium occurs when the indifference curve is tangent to the budget line. consumer equilibrium class 11 notes

where $P_1$ and $P_2$ are prices of goods 1 and 2, $Q_1$ and $Q_2$ are quantities of goods 1 and 2, and $M$ is the consumer's income. First, Rahul thinks, "I’m starving

As a consumer consumes more units of a good, the extra satisfaction (MU) derived from each successive unit goes on declining. 3. Case 1: Equilibrium in a Single Commodity Case consumer equilibrium class 11 notes