Given: MUx = 15 utils, Px = ₹5 → MUx/Px = 15/5 = 3 MUy = 20 utils, Py = ₹4 → MUy/Py = 20/4 = 5 Since MUx/Px (3) < MUy/Py (5) , the consumer is not in equilibrium . He is getting more satisfaction per rupee from good Y. To reach equilibrium, he should buy more of good Y and less of good X . This will cause MUy to fall and MUx to rise until the ratios become equal.
The imaginary psychological unit used to measure utility.
![Diagram in mind: IC is convex, Budget line is straight. They touch at exactly one point (E).] consumer equilibrium class 11 notes free
A from your textbook (e.g., calculating schedule or equilibrium) A specific scenario where doesn't equal Any board exam question you find tricky I can break down the math or logic step-by-step for you! Share public link
You’ve landed on the right page. These notes are prepared strictly according to the CBSE and major state board syllabus for Class 11 Economics (Introductory Microeconomics). We will cover the Cardinal Utility Approach (Utility Analysis) in detail. Given: MUx = 15 utils, Px = ₹5
The Indifference Curve must be convex to the origin at the point of equilibrium. This means must be diminishing. What Happens Out of Equilibrium? If
Download the free PDFs linked above, practice the graphs, and you'll master this foundational microeconomics concept. This will cause MUy to fall and MUx
TU=U1+U2+U3+…+UnTU equals cap U sub 1 plus cap U sub 2 plus cap U sub 3 plus … plus cap U sub n
The consumer is in equilibrium at the point where the Budget Line is tangent to the highest possible Indifference Curve [1].
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