Consumer Equilibrium Class 11 Notes - Free ~upd~

The consumer reaches equilibrium where the budget line is tangent to the highest possible indifference curve. (Slope of IC = Slope of Budget Line)

represents the worth of a rupee to the consumer. It is the extra satisfaction a consumer gets by spending an additional unit of money. 5. Indifference Curve (Ordinal Approach) consumer equilibrium class 11 notes free

An indifference curve shows what a consumer wants to buy, but their shows what they can afford to buy. A budget line represents all the different combinations of two goods a consumer can purchase given their limited income and the market prices of the goods. The consumer reaches equilibrium where the budget line

A graphical line showing all combinations of two goods that cost exactly equal to the consumer's total income ( A graphical line showing all combinations of two

Rohan laughed. “That sounds like a boring textbook chapter.”

): The sum total of satisfaction derived from consuming all units of a commodity. Marginal Utility ( MUcap M cap U