Consumer Equilibrium Class 11 Notes Free Verified

The consumer will allocate income such that the last rupee spent on each good yields the same marginal utility .

You feel you have bought the best possible combination of goods with your money. If you change anything, you will feel less satisfied.

These on Consumer Equilibrium cover the cardinal utility approach in depth. Remember the golden rule: A rational consumer stops when the joy of the last unit (MU) equals the pain of paying its price.