Consumer’s Equilibrium

In the economics human wants are unlimited and means to satisfy those wants are limited. Consumer purchase different commodities but his income is limited so he tries to purchase necessary products or commodities from which he gets maximum utility. Consumer Equilibrium is basically the planning done by consumer for those commodities which have essential use and by acquiring those products he gets maximum worth of his money. The consumer use two important tools to identify the consumer equilibrium first is Indifference curve and second is the budget line (it is also known as Price Line). Through these tools they are able to identify the exact position of the demand and accordingly they try to identify the suppliers who are ready to supply those commodities. In this process the consumer should be rational in his behaviour.

Author:
Dharmendra Khairajani, Assistant Professor, Unitedworld School of Liberal Arts and Mass Communication (USLM)

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