Consumer Equilibrium refers to a state where a consumer spends their limited income on various goods and services in a way that provides them with maximum possible satisfaction (utility), leaving them with no tendency to change their spending pattern. Below are the summarized notes for Class 11 Microeconomics: 1. Key Concepts and Approaches

. In Class 11 Microeconomics, this is typically analyzed through two main approaches: Cardinal Utility (Marshallian) and Ordinal Utility (Indifference Curve). 1. Cardinal Utility Approach (Marshallian Analysis)

Rohan laughed. “That sounds like a boring textbook chapter.”

7. Practice Questions (Self-check)

1. Define consumer equilibrium in one sentence.
2. Why does MU = P give maximum satisfaction?
3. A consumer buys 6 units of a good at price ₹4. At 6th unit, MU = 3. Is he in equilibrium? What should he do?
4. State the law of equi-marginal utility.
5. Give one reason why the cardinal utility approach is criticized.

One day, his friend Priya said, “Rohan, you’re always broke. You need to understand ‘Consumer Equilibrium’.”