Consumer Equilibrium using Ordinal Approach

Consumer equilibrium is the situation where a consumer gets maximum utility/satisfaction at prevailing prices in the market. Following is consumer equilibrium using Ordinal Approach or Hicksian Approach which means the consumer can only rank commodities on his/her preference as he cannot express it in numeric terms. For Ordinal Approach we need to learn about: Indifference […]

Consumer Equilibrium using Cardinal Approach

Consumer equilibrium is the situation where a consumer gets maximum utility/satisfaction at prevailing prices in the market. Following is the consumer equilibrium using cardinal utility approach which means the consumer can measure his/her satisfaction in numbers. Cardinal utility approach divides consumer equilibrium in 2 cases: One commodity case Two commodity case One Commodity Case(Consumer Equilibrium) […]

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