![Diagram in mind: IC is convex, Budget line is straight. They touch at exactly one point (E).]
: The consumer is getting more satisfaction than the price paid, so they will increase consumption. consumer equilibrium class 11 notes free
When buying multiple goods, equilibrium is reached when the ratio of MU to price is equal across all goods. ![Diagram in mind: IC is convex
: The sum total of satisfaction from consuming all units of a commodity ( Marginal Utility (MU) consumer equilibrium class 11 notes free