Consumer Equilibrium Class 11 Notes Free ((free)) Jun 2026

The budget line shows all possible combinations of two goods that a consumer can buy using their entire income at current market prices.

| Feature | Utility Analysis (Cardinal) | Indifference Curve Analysis (Ordinal) | | :--- | :--- | :--- | | | Alfred Marshall | Hicks & Allen | | Utility | Measurable in numbers (utils) | Not measurable; only comparable | | Main Tool | Marginal Utility (MU) | Indifference Curve (IC) & Budget Line | consumer equilibrium class 11 notes free

Realistically, a consumer spends money on many goods. For two goods (X and Y), equilibrium occurs when the is equal for both goods, and the entire income is spent. The budget line shows all possible combinations of