1. Consumers equilibrium Two commodities
K KDUBEY
PGT (ECO)

2. CONSUMER’S EQUILIBRIUM FOR MORE THAN TWO GOODS
Equilibrium condition for more than two goods:

3. CONSUMERS EQUILIBRIUM- under two commodities
Suppose a consumer consumes only two goods.
Let these goods be X and Y
Prices Px and Py.
Consumer attains equilibrium only when the following condition is satisfied:
The assumption of consumer’s equilibrium for one good is extended to two
good also.

4. CONSUMER’S EQUILIBRIUM TWO GOODS…
What happens when
Suppose a consumer has Rs. 20 with him which he wants to spend on two goods X and Y. The price of each unit of X is Rs.5 and Y Is Rs.2
Units
MUx
MU/Px
MUy
Muy/Py 1 50
10(50/5) 24
12(24/2) 2 40 8 22 11 3 30 6 20 10 4 18 9 5 16 14 7

5. Consumers equilibrium
Consumer will be in equilibrium when he purchase 2 units of good X and 5 units of good Y. This can be stated in the following ways:
From the table
(1)
is satisfied
Thus the condition
(2)
(3) 4)

6. CONSUMERS EQUILIBRIUM WITH TWO COMMODITIES(SAME PRICE OF BOTH THE COMMODITIES)
UNITS
MUx
MUy 1 20 16 2 14 12 3 8 4 7 5

7. THANK YOU