Consumer Equilibrium Class 11 Notes Jun 2026

| Approach | Condition | Assumption | | :--- | :--- | :--- | | Single commodity | ( MU_x = P_x ) | Constant MU of money | | Two commodity (Utility) | ( \fracMU_xP_x = \fracMU_yP_y ) | Utility measurable | | Indifference Curve | ( MRS_xy = \fracP_xP_y ) & IC convex | Utility ranked, not measured |

Consumer equilibrium refers to a situation where a consumer spends their given income on one or more goods in a way that yields maximum total satisfaction (utility). At this point, the consumer has no urge to change their expenditure pattern. Consumer Equilibrium Class 11 Notes

What is Consumer Equilibrium? A: Consumer equilibrium refers to a situation where a consumer maximizes their total utility given their income and market prices. At this point, the consumer has no tendency to change their consumption pattern. In the utility approach, it occurs when ( \fracMU_xP_x = \fracMU_yP_y ); in the IC approach, it occurs where the budget line is tangent to the indifference curve. | Approach | Condition | Assumption | |