Consumer Equilibrium Class 11 Notes**
The point of tangency between the indifference curve and the budget line represents the consumer equilibrium, where the consumer is maximizing their satisfaction given their budget constraint. Consumer Equilibrium Class 11 Notes
\[MU_x / P_x = MU_y / P_y\]
The slope of the indifference curve is called the , which represents the rate at which a consumer is willing to substitute one good for another. Consumer Equilibrium Class 11 Notes** The point of
Consumer equilibrium refers to a situation where a consumer is maximizing their satisfaction or utility from consuming different goods and services, given their income and the prices of the goods and services. In other words, a consumer is in equilibrium when they are unable to increase their satisfaction by changing their consumption pattern. Consumer Equilibrium Class 11 Notes