Consumer Equilibrium Class 11 Notes Free Link -

The law states that as a consumer consumes more and more units of a commodity, the marginal utility derived from each successive unit goes on declining. Assumptions

An economic agent who buys goods and services to satisfy personal wants. consumer equilibrium class 11 notes free

: The consumer values Good X less than its market price. They will reduce consumption of X and buy more Y. This action raises MRSXYcap M cap R cap S sub cap X cap Y end-sub back up to the price ratio. Quick Summary Cheat Sheet Feature / Theory Utility Approach (Cardinal) Indifference Curve Approach (Ordinal) Quantifiable (Utils) Qualitative (Ranked Preferences) Key Tools Marginal Utility ( MUcap M cap U Indifference Curve ( ICcap I cap C ) & Budget Line Equilibrium Rule (1 Good) Not Applicable Equilibrium Rule (2 Goods) The law states that as a consumer consumes