Consumer Equilibrium: Class 11 Economics Notes Consumer Equilibrium is a state where a consumer derives maximum satisfaction from their expenditure, given their income and the prices of goods. In this state, the consumer has no urge to change their consumption pattern. 1. Utility Analysis (Cardinal Approach)
This approach, proposed by Alfred Marshall, assumes utility can be measured in units called A. Single Commodity Case
| Units | MU of Samosa (utils) | MU of Chai (utils) | MU Sam/Price | MU Chai/Price | |-------|----------------------|--------------------|--------------|----------------| | 1st | 30 | 20 | 30/10 = 3 | 20/5 = 4 | | 2nd | 20 | 15 | 20/10 = 2 | 15/5 = 3 | | 3rd | 10 | 10 | 10/10 = 1 | 10/5 = 2 |