Consumer Equilibrium Class 11 Notes Free: [repack]

Imagine you can only buy one product (e.g., Apples). At what point should you stop buying? A rational consumer will continue purchasing apples until the Marginal Utility of the apple equals the Price of the apple.

The ordinal approach, associated with Hicks and Allen, overcomes the unrealistic assumption of measuring utility in numbers. Instead, it assumes a consumer can only their preferences. It uses two key tools: the budget line and the indifference curve. consumer equilibrium class 11 notes free

: The sum total of satisfaction from consuming all units of a commodity ( Marginal Utility (MU) Imagine you can only buy one product (e

The rate at which a consumer is willing to substitute one good for another to maintain the same level of utility. associated with Hicks and Allen