!exclusive! | Consumer Equilibrium Class 11 Notes Free

maximum satisfaction

Consumer equilibrium is the "state of rest" where a consumer achieves from their limited income at given market prices . At this point, the consumer has no incentive to change their spending pattern. 🧭 Core Approaches to Equilibrium

Diagrammatic Explanation:

Budget Line (Price Line):

A straight line showing all possible combinations a consumer can buy with their income. consumer equilibrium class 11 notes free

Rule:

A consumer buys a good until Marginal Utility (MU) = Price (P) . maximum satisfaction Consumer equilibrium is the "state of

Definition:

A consumer is said to be in equilibrium when they maximize their total utility (satisfaction) given their income and the prices of goods, and have no incentive to change their spending pattern. Rule: A consumer buys a good until Marginal

This approach assumes utility cannot be measured in numbers but can be ranked (1st preference, 2nd preference, etc.).