Consumer's Equilibrium refers to the situation when a consumer is having maximum satisfaction with limited income and has no tendency to change his way of existing expenditure. The consumer has to pay a price for each unit of the commodity. So, he cannot buy or consume unlimited quantity.
CONSUMER EQUILIBRIUM >> A consumer is in a state of equilibrium when he maximizes his satisfaction by spending his given income on different goods and services. Any deviation or change in the allocation of income under the given circumstance will lead to a fall in total satisfaction.
FOR ONE-COMMODITY CASE >> Rupee worth of satisfaction actually received by the consumer is equal to the marginal utility of money as specified by the consumer himself.
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Explanation:
Consumer's Equilibrium refers to the situation when a consumer is having maximum satisfaction with limited income and has no tendency to change his way of existing expenditure. The consumer has to pay a price for each unit of the commodity. So, he cannot buy or consume unlimited quantity.
CONSUMER EQUILIBRIUM >> A consumer is in a state of equilibrium when he maximizes his satisfaction by spending his given income on different goods and services. Any deviation or change in the allocation of income under the given circumstance will lead to a fall in total satisfaction.
FOR ONE-COMMODITY CASE >> Rupee worth of satisfaction actually received by the consumer is equal to the marginal utility of money as specified by the consumer himself.