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Consumers equilibrium in case of two commodities

Describe the consumer’s equilibrium in case of two commodities (IC) approach.

Answer: Consumer equilibrium refers to a condition when he spends his specified income on purchase of a commodity (or commodities) in such a manner that yields him utmost satisfaction.

Condition of equilibrium: MU in terms of money = Price.

MU of product / MU of a Rupee = Price

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