Explain the condition of consumer's equilibrium in case of a sing… - Vidyadip

Question

Explain the condition of consumer's equilibrium in case of a single commodity.

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Answer

In case of a single commodity, the consumer will be in equilibrium when the following condition is satisfied,$\text{i.e.}\frac{\text{MU}_\text{X}}{\text{P}_\text{X}}=\text{MU}_\text{M}$
Where, $MUM$ = Mariginal Utility of money. $P_x$ = Price of commodity $X. MU_x$ = Marginal Utility of Commodity $X$.

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