{"id":3578,"date":"2020-02-24T04:50:28","date_gmt":"2020-02-24T04:50:28","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3578"},"modified":"2020-02-24T04:50:28","modified_gmt":"2020-02-24T04:50:28","slug":"consumer-equilibrium","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/consumer-equilibrium\/","title":{"rendered":"CONSUMER EQUILIBRIUM"},"content":{"rendered":"\n<p>In this post you will learn about the concept of consumer equilibrium concept and equilibrium in case of one commodity and two commodities.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/#CONSUMER_EQUILIBRIUM\" title=\"CONSUMER EQUILIBRIUM\">CONSUMER EQUILIBRIUM<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/#ASSUMPTIONS_OF_CONSUMER_EQUILIBRIUM\" title=\"ASSUMPTIONS\nOF CONSUMER EQUILIBRIUM\">ASSUMPTIONS\nOF CONSUMER EQUILIBRIUM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/#CONSUMER_EQUILIBRIUM_THROUGH_CARDINAL_UTILITY_APPROACH\" title=\"CONSUMER EQUILIBRIUM THROUGH CARDINAL UTILITY\nAPPROACH\">CONSUMER EQUILIBRIUM THROUGH CARDINAL UTILITY\nAPPROACH<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/#CONSUMER_EQUILIBRIUM_IN_CASE_OF_SINGLE_COMMODITY\" title=\"CONSUMER\nEQUILIBRIUM IN CASE OF SINGLE COMMODITY\">CONSUMER\nEQUILIBRIUM IN CASE OF SINGLE COMMODITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/#CONSUMER_EQUILIBRIUM_IN_CASE_OF_TWO_COMMODITIES\" title=\"CONSUMER EQUILIBRIUM IN CASE OF TWO COMMODITIES\">CONSUMER EQUILIBRIUM IN CASE OF TWO COMMODITIES<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"consumer-equilibrium\"><span class=\"ez-toc-section\" id=\"CONSUMER_EQUILIBRIUM\"><\/span><strong>CONSUMER EQUILIBRIUM<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A consumer is said to be in equilibrium when he is buying such a combination of goods as leaves him with no tendency to rearrange his purchases of goods. Consumer equilibrium is the point of maximum satisfaction of the consumer.<\/p>\n\n\n\n<p>He is then in a position of balance in regard\nto the allocation of his money expenditure among various goods.<\/p>\n\n\n\n<p><strong>ACCORING TO ANNA KOUTSOYIANNIS<\/strong><\/p>\n\n\n\n<p>\u201cThe\nconsumer is in equilibrium when he maximizes his utility, given his income and\nthe market prices.\u201d<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"assumptions-of-consumer-equilibrium\"><span class=\"ez-toc-section\" id=\"ASSUMPTIONS_OF_CONSUMER_EQUILIBRIUM\"><\/span><strong>ASSUMPTIONS\nOF CONSUMER EQUILIBRIUM<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&nbsp;The following assumptions are made to\ndetermine the consumer\u2019s equilibrium position.<\/p>\n\n\n\n<p>&nbsp;<strong>i. Rationality:<\/strong><\/p>\n\n\n\n<p>It is assumed that a consumer is rational and satisfies his\/her wants in order of his\/her preferences. Therefore, he\/she firstly prefers to purchase those goods which yield highest utility and lastly those that provide lowest utility.<\/p>\n\n\n\n<p><strong>ii. Limited Money Income:<\/strong><\/p>\n\n\n\n<p>This refers to one of the important assumptions of the cardinal utility approach. According to this approach, a consumer has a limited amount of income to be expended on goods selected by him\/her for consumption. Therefore, in such a case when there is an objective of utility maximization along with limited income, he\/she selects those goods whose consumption is unavoidable.<\/p>\n\n\n\n<p><strong>iii. Maximization of Satisfaction:<\/strong><\/p>\n\n\n\n<p>This implies that every rational consumer strives to maximize his\/her satisfaction from the limited income.<\/p>\n\n\n\n<p><strong>iv. Utility is Measurable:<\/strong><\/p>\n\n\n\n<p>It is assumed that utility is cardinally measureable. Therefore, utility of one unit of good equals to the units of money that a consumer is willing to pay, which means that 1 util = 1 unit of money.<\/p>\n\n\n\n<p><strong>v. Diminishing Marginal\nUtility:<\/strong><\/p>\n\n\n\n<p>It constitutes the basis for consumer behavior analysis. The utility gained falls as more and more units of a good are consumed.<\/p>\n\n\n\n<p><strong>vi. Constant Marginal Utility\nof Money:<\/strong><\/p>\n\n\n\n<p>It implies that whatever the level of income, the MU of money remains the same. According to this assumption, money is used as a measure of utility.<\/p>\n\n\n\n<p><strong>vii. Utility is Additive:<\/strong><\/p>\n\n\n\n<p>It Implies that <a href=\"https:\/\/commerceiets.com\/utility-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"utility (opens in a new tab)\">utility<\/a> is not only cardinally measurable, but can be added together to obtain the total utility. For instance, a consumer consumes X<sub>1<\/sub>, X<sub>2<\/sub>, and X<sub>3<\/sub>&nbsp;units of good X and derives U<sub>1<\/sub>, U<sub>2<\/sub>&nbsp;and U<sub>3<\/sub>&nbsp;utils, respectively.<\/p>\n\n\n\n<p><strong>In such a case, the total utility\nderived by a consumer from n units of good X is expressed as:<\/strong><\/p>\n\n\n\n<p>U<sub>n<\/sub>&nbsp;= U<sub>1<\/sub>&nbsp;(X<sub>1<\/sub>) + U<sub>2<\/sub>&nbsp;(X<sub>2<\/sub>) + U<sub>3<\/sub>&nbsp;(X<sub>3<\/sub>) +\u2026\u2026\u2026\u2026+ U<sub>n&nbsp;<\/sub>(X<sub>n<\/sub>)<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"consumer-equilibrium-through-cardinal-utility-approach\"><span class=\"ez-toc-section\" id=\"CONSUMER_EQUILIBRIUM_THROUGH_CARDINAL_UTILITY_APPROACH\"><\/span><strong>CONSUMER EQUILIBRIUM THROUGH CARDINAL UTILITY\nAPPROACH<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\nutility approach was given by Marshall. As per Marshall, utility can be\nmeasured numerically like 1, 2, 3 in simple units called UTILS and expressed in\ntotal and marginal utility. This is called CARDINAL MEASURE OF UTILITY.<\/p>\n\n\n\n<p>A\nconsumer may attain equilibrium in case of consumption of a single commodity as\nwell as when he is consuming two commodities available at same and different\nprices. The different cases to be considered under the utility approach are\ndescribed below.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"consumer-equilibrium-in-case-of-single-commodity\"><span class=\"ez-toc-section\" id=\"CONSUMER_EQUILIBRIUM_IN_CASE_OF_SINGLE_COMMODITY\"><\/span><strong>CONSUMER\nEQUILIBRIUM IN CASE OF SINGLE COMMODITY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Consumer\u2019s Equilibrium in case of one commodity can be well explained by the use of law of diminishing marginal utility. The <a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Law of Diminishing Marginal Utility (opens in a new tab)\">Law of Diminishing Marginal Utility<\/a> states that the amount of satisfaction provided by the consumption of every additional unit of a good decrease as we increase the consumption of that good. Marginal Utility is the change in the utility derived from the consumption of an additional unit of a good.<\/p>\n\n\n\n<p><strong>CONDITION OF EQUILIBRIUM<\/strong><\/p>\n\n\n\n<p>In case of single commodity, the\nconsumer is in equilibrium if the marginal utility derived from the commodity\nis equal to the price paid for that commodity.<\/p>\n\n\n\n<p>MU= PRICE<\/p>\n\n\n\n<p><strong>TABULAR EXPLANATION: <\/strong>The\nconsumer equilibrium in case of single commodity can be explained as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  UNITS OF COMMODITY\n  <\/td><td>\n  PRICE\n  <\/td><td>\n  MARGINAL UTILITY\n  <\/td><\/tr><tr><td>\n  1\n  <\/td><td>\n  10\n  <\/td><td>\n  14\n  <\/td><\/tr><tr><td>\n  2\n  <\/td><td>\n  10\n  <\/td><td>\n  12\n  <\/td><\/tr><tr><td>\n  <strong>3<\/strong>\n  <\/td><td>\n  <strong>10<\/strong>\n  <\/td><td>\n  <strong>10<\/strong>\n  <\/td><\/tr><tr><td>\n  4\n  <\/td><td>\n  10\n  <\/td><td>\n  8\n  <\/td><\/tr><tr><td>\n  5\n  <\/td><td>\n  10\n  <\/td><td>\n  6\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>&nbsp;The table shows the price of commodity Rupees\n10 which is constant. The units of commodities are 5. The consumer attains his\nequilibrium by consuming3 units of the commodity. As by consuming 3 units of\ncommodity the price is equals to the marginal utility i.e. 10.<\/p>\n\n\n\n<p><strong>DIAGRAMATIC PRESENTATION<\/strong><\/p>\n\n\n\n<p>The consumer equilibrium in case\nof single commodity can be explained with the help of following diagram:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"450\" height=\"250\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/Marginal-Utility-and-Indifference-curve-analysis-class-12-.png\" alt=\"Marginal-Utility-and-Indifference-curve-analysis-class-12-.png\" class=\"wp-image-3580\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/Marginal-Utility-and-Indifference-curve-analysis-class-12-.png 450w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/Marginal-Utility-and-Indifference-curve-analysis-class-12--300x167.png 300w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><figcaption>CONSUMER EQUILIBRIUM<\/figcaption><\/figure>\n\n\n\n<p>The quantity of the commodity is\nshown as OX axis. The price of the commodity is shown at OY axis. At point E\nthere is equilibrium as there is price equals to the marginal utility of the\nproduct.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"consumer-equilibrium-in-case-of-two-commodities\"><span class=\"ez-toc-section\" id=\"CONSUMER_EQUILIBRIUM_IN_CASE_OF_TWO_COMMODITIES\"><\/span><strong>CONSUMER EQUILIBRIUM IN CASE OF TWO COMMODITIES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The consumer\u2019s equilibrium in case of two commodities can be explained with the help of <a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"law of equi-marginal utility (opens in a new tab)\">law of equi-marginal utility<\/a>. This law states that a consumer should spend his limited income on different commodities in such a way that the last rupee spent on each commodity yield him equal marginal utility in order to get maximum satisfaction.<\/p>\n\n\n\n<p><strong>CONDITION OF THE\nEQUILIBRIUM<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"151\" height=\"47\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/image6212774105133650102.jpg\" alt=\"image6212774105133650102.jpg\" class=\"wp-image-3581\"\/><\/figure>\n\n\n\n<p>The consumer\nattains the equilibrium where marginal utilities of both commodities are equal\nto marginal utility of money.<\/p>\n\n\n\n<p><strong>If MU<em>x<\/em>\/P<em>x<\/em>&nbsp;&gt; MU<em>y<\/em>\/P<em>y<\/em>&nbsp;: <\/strong>It means utility per rupee from consumption of good x is greater than utility per rupee from consumption of good y.<br \/> The consumer should increase the consumption of good x and &nbsp;reduce the consumption of good y. By doing so the utility per rupee from good x will decrease and utility per rupee from good y will increase and ultimately both become equal. The consumer will attain equilibrium.<br \/> &nbsp;<br \/><strong> If MU<em>x<\/em>\/P<em>x<\/em>&nbsp;&lt; MU<em>y<\/em>\/P<em>y:<\/em><\/strong>&nbsp;It means utility per rupee from consumption of good x is less than utility per rupee from consumption of good y.<br \/> The consumer should increase the consumption of good y and &nbsp;reduce the consumption of good x. By doing so the utility per rupee from good y will decrease and utility per rupee from good x will increase and ultimately both become equal. The consumer will attain equilibrium.<br \/> <br \/> Hence in case of two commodities the consumer attains equilibrium when<br \/> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;<strong>MU<em>x<\/em>\/P<em>x<\/em>&nbsp;= MU<em>y<\/em>\/P<em>y<\/em>&nbsp;= MU<em>m<\/em><\/strong><\/p>\n\n\n\n<p><strong>EXPLANATION<\/strong><\/p>\n\n\n\n<p>The consumer equilibrium in case\nof two commodities can be explained as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"503\" height=\"341\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/EMU-FINAL-TABLE-1.png\" alt=\"EMU FINAL TABLE.png\" class=\"wp-image-3582\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/EMU-FINAL-TABLE-1.png 503w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/EMU-FINAL-TABLE-1-300x203.png 300w\" sizes=\"(max-width: 503px) 100vw, 503px\" \/><figcaption>CONSUMER EQUILIBRIUM<\/figcaption><\/figure>\n\n\n\n<p>The\ntable reveals that the consumer has Rs. 9 which he can spend on the different\ncommodities, namely, A and B. We also assume that the each unit of a commodity\nhas the price of Re. 1. The various units of two commodities have been shown\nwhich gives him different marginal utilities. The MU of A and B are decreasing.\nHe can maximise his satisfaction when he spends Rs. 5 on commodity A and Rs. 4\non commodity B.<\/p>\n\n\n\n<p>His total utility is 32+28+24+20+16 of A and 28+24+20+16 of B which is 208 units. He cannot attain more utility by spending his given income in different way. <\/p>\n\n\n\n<p><strong>DIAGRAMMATIC PRESENTATION<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"345\" height=\"280\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/clip_image002_thumb639.jpg\" alt=\"\" class=\"wp-image-3583\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/clip_image002_thumb639.jpg 345w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/clip_image002_thumb639-300x243.jpg 300w\" sizes=\"(max-width: 345px) 100vw, 345px\" \/><figcaption>CONSUMER EQUILIBRIUM<\/figcaption><\/figure>\n\n\n\n<p>The diagram shows that consumer attains his equilibrium at point E where marginal utility of commodity X is equal to the marginal utility of commodity Y. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"CONSUMER EQUILIBRIUM\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>CONSUMER EQUILIBRIUM<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>In this post you will learn about the concept of consumer equilibrium concept and equilibrium in case of one commodity and two commodities. CONSUMER EQUILIBRIUM A consumer is said to be in equilibrium when he is buying such a combination of goods as leaves him with no tendency to rearrange his purchases of goods. Consumer&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CONSUMER EQUILIBRIUM&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3584,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[113,92],"tags":[],"class_list":["post-3578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-managerial-economics","category-micro-economics"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3578"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3578"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3584"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}