The consumer equilibrium can be represented mathematically using the following equation:
To determine the consumer equilibrium, we need to find the point where the indifference curve is tangent to the . The budget line represents the different combinations of two goods or services that a consumer can afford given their income and the prices of the goods and services. Consumer Equilibrium Class 11 Notes
Consumer equilibrium refers to a situation where a consumer is maximizing their satisfaction or utility from consuming different goods and services, given their income and the prices of the goods and services. In other words, a consumer is in equilibrium when they are unable to increase their satisfaction by changing their consumption pattern. In other words, a consumer is in equilibrium
\[MU_x / P_x = MU_y / P_y\]
Consumer Equilibrium Class 11 Notes**