Consumer Equilibrium Class 11 Notes Free [work] «2024-2026»

A consumer is in equilibrium when the marginal utility of the commodity (in terms of money) equals its price.

Consumer Equilibrium is a state of balance where a consumer derives maximum satisfaction consumer equilibrium class 11 notes free

The last rupee spent on good X gives the same satisfaction as the last rupee spent on good Y. Buy 1st Chai (₹5 left ₹45)

This approach assumes utility can be measured in numerical units called Total Utility (TU): 8. Quick Revision Summary (Last-Minute Read)

“I feel perfect,” Rohan said. “No craving for more.”

Buy 1st Chai (₹5 left ₹45). MU/Price: Samosa=3, Chai=3? No, after 1 chai, chai's MU/price falls to 3 (15/5). Now both equal.
Buy 1st Samosa (₹10, left ₹35). Now check again: Next samosa MU/price = 2, next chai MU/price = 2.
Buy 2nd Chai (₹5, left ₹30).
Buy 2nd Samosa (₹10, left ₹20).
Buy 3rd Chai (₹5, left ₹15).