Consumer Equilibrium Class 11 Notes Free -

This is the Ordinal Utility Approach by Hicks and Allen. No numbers; only preferences.

| Aspect | Single Commodity | Two Commodity | | :--- | :--- | :--- | | Equilibrium Condition | ( MU_x = P_x ) | ( \fracMU_xP_x = \fracMU_yP_y ) | | Rationale | Law of DMU | Law of Equi-Marginal Utility | | If MU > Price | Buy more | Shift spending to higher MU good | | If MU < Price | Buy less | Shift spending away from lower MU good | | Graph | MU curve cuts Price line | No single graph; uses ratio tables | consumer equilibrium class 11 notes free

This approach assumes that utility (satisfaction) can be measured in hypothetical units called "Utils". This is the Ordinal Utility Approach by Hicks and Allen