[work] - Consumer Equilibrium Class 11 Notes Free

The additional satisfaction gained from consuming one more unit of a good.

The cardinal approach determines consumer equilibrium under two different scenarios: a single commodity and two or more commodities. Case A: Single Commodity Scenario consumer equilibrium class 11 notes free

A curve showing combinations of two goods that give the consumer equal satisfaction. The additional satisfaction gained from consuming one more

The budget line shows all possible combinations of two goods that a consumer can purchase with a given income at given market prices. Its equation is $P_x \cdot Q_x + P_y \cdot Q_y = M$, where M is the consumer's income. The slope of the budget line is $-\fracP_xP_y$, which represents the rate at which the market allows the consumer to substitute good Y for good X. consumer equilibrium class 11 notes free