Consumer equilibrium: Refers to a situation

Consumer Equilibrium refers to a situation where the consumer has achieved the maximum possible satisfaction from the quantity of the commodities purchased given his/her income and prices of the commodities in the market. In this article we will discuss about Consumer's Equilibrium. After reading this article you will learn about: 1. Meaning of Consumer’s Equilibrium 2. Assumptions 3. Conditions 4. Corner Solutions. Meaning of Consumer’s Equilibrium: A consumer is in equilibrium when given his tastes, and price of the two fig 15 goods, he spends a given money income on the purchase of two goods in such a way as to get the maximum satisfaction, According to Koulsayiannis, “The consumer is in equilibrium ... CONSUMER'S EQUILIBRIUM We buy many goods and services to satisfy our wants. Using up of goods and services to satisfy wants is called consumption and the economic agent who buys goods and services is called a consumer. When a consumer buys any good or service, his/her main objective is to get maximum satisfaction from the quantity of the commodities purchased by spending his/her income at the given market price. How does a consumer maximize his/her satisfaction from spending his/her income ... Hence, Consumer's Equilibrium is a situation in which a consumer has maximum satisfaction with limited income and does not tend to change his existing way of expenditure. As a consumer has to pay for each unit of commodity, he cannot purchase or consume unlimited quantities.