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What is meant by consumer’s Equilibrium? State its condition in case of a single commodity. |
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Answer» A consumer is said to be in equilibrium, when he is spending his given income on various goods in such a way that maximises his satisfaction. Condition of consumers equilibrium in case of a single commodity: consumers equilibrium in case of a single commodity is attained when the marginal utility of the commodity measured in terms of money equal to it’s price symbolically. MUx = Px |
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