Consumer's Equilibrium
Part 2 — one-commodity equilibrium, the Law of Equimarginal Utility and two-commodity equilibrium.
In this lesson you will
- Explain consumer's equilibrium with one commodity (MUx = Px) from a schedule and a diagram
- Explain why buying more or less than the equilibrium quantity lowers satisfaction
- State the Law of Equimarginal Utility and find the equilibrium of two goods from a schedule