What are the conditions for consumer equilibrium?

There are three conditions for consumer's equilibrium:

  • (1) The Budget line should be Tangent to the Indifference Curve.
  • (2) At the point of Equilibrium the Slope of the Indifference Curve and of the Budget Line should be the same.
  • (3) Indifference curve should be Convex to the Origin.

Related Posts: