Consumer Equilibrium can be explained as the point where a consumer gets the maximum amount of satisfaction from the choice he makes between 2 or more competing products. Any deviation from this point results in less satisfaction. For example, A consumer with limited income may wish to purchase both fruit and vegetables. However, the more fruit he buys, the less vegetable he can purchase and vice versa . The consumer equilibrium point will be a point at which he can purchased enough of each to gain the maximum satisfaction with his purchase decision.
Monday, February 3, 2014
Filled Under: Economics
Consumer Equilibrium can be explained as the point where a consumer gets the maximum amount of satisfaction from the choice he makes between 2 or more competing products. Any deviation from this point results in less satisfaction. For example, A consumer with limited income may wish to purchase both fruit and vegetables. However, the more fruit he buys, the less vegetable he can purchase and vice versa . The consumer equilibrium point will be a point at which he can purchased enough of each to gain the maximum satisfaction with his purchase decision.
Example of Consumer Equilibrium
Consumer Equilibrium can be explained as the point where a consumer gets the maximum amount of satisfaction from the choice he makes between 2 or more competing products. Any deviation from this point results in less satisfaction. For example, A consumer with limited income may wish to purchase both fruit and vegetables. However, the more fruit he buys, the less vegetable he can purchase and vice versa . The consumer equilibrium point will be a point at which he can purchased enough of each to gain the maximum satisfaction with his purchase decision.
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