Consumer Equilibrium
Ajit Kumar Assumptions of IC Analysis of Consumer’s Equilibrium Two Conditions of Consumer Equilibrium: This condition states that at only the point where IC and budget line are tangent to each other…
Micro
Consumer’s Equilibrium
Understanding the law of diminishing marginal utility is crucial for economists and businesses when analyzing consumer behavior, setting prices, and predicting how changes in factors like income or prices might…
Law of Diminishing Marginal Utility
The law of diminishing marginal utility states that as more and more units of a commodity are consumed, the marginal utility derived from every additional unit must decline. This means…
Relationship between Total utility and Marginal utility
Quantity of Ice cream Total utility Marginal utility 0 0 – 1 10 10 2 18 8 3 25 7 4 31 6 5 31 0 6 29 -2
Consumer equilibrium
Consumer equilibrium refers to a situation when the consumer’s satisfaction from a commodity equals the amount that they are paying to purchase the commodity. Price can be easily measured, however,…
Understanding Microeconomics: An Introduction to the Study of Individual Economic Behavior
Microeconomics is a branch of economics that focuses on the study of individual economic behavior. It is concerned with the decisions made by individuals, households, and firms, and how these…