Consumer Equilibrium - Class 11 Notes Free New!

The slope of IC (Marginal Rate of Substitution) equals the slope of the Budget Line (Price Ratio).

The rate at which a consumer is willing to substitute Good Y for Good X. ( consumer equilibrium class 11 notes free

Buy 3 units of X (spend ₹12) and 6 units of Y (spend ₹12). At this point, ( MU_x / P_x = MU_y / P_y = 3 ). The slope of IC (Marginal Rate of Substitution)

This is the by Hicks and Allen. No numbers; only preferences. consumer equilibrium class 11 notes free

There are two primary ways to analyze consumer behavior and equilibrium: