Consumer Equilibrium Class 11 Notes Free ^new^ May 2026

Consumer Equilibrium Class 11 Notes: The Ultimate Guide to Maximum Satisfaction

Budget Line (Price Line): A straight line showing all possible combinations a consumer can buy with their income. consumer equilibrium class 11 notes free

: The consumer is getting less satisfaction than the price paid, so they will decrease consumption. Two Commodities Case (Law of Equi-Marginal Utility) Consumer Equilibrium Class 11 Notes: The Ultimate Guide

Condition for Equilibrium: A consumer will buy apples until: [ MU_x = P_x ] (Where ( MU_x ) = Marginal Utility of commodity X, and ( P_x ) = Price of X) Left of E: MU > P → consumer gains by buying more

• Left of E: MU > P → consumer gains by buying more.
• Right of E: MU < P → consumer loses by buying more.
• At E: Maximum satisfaction.

A. Single Commodity Case (Marginal Utility Analysis)

Assumption: The consumer spends their entire income on a single good (say, Good X), and the price is fixed.

: The consumer gains more utility than the cost; they will buy more.

Conclusion: The consumer will buy 3 units to reach equilibrium.