Consumer’s equilibrium refers to a situation where a consumer spends their given income on one or more goods in such a way that they get and has no urge to change this level of consumption, given the prices of goods. Core Assumptions: Rationality: The consumer aims to maximize satisfaction. Constant Income: The consumer's money income is fixed.

A consumer always prefers more of a good if it offers at least as much of other goods. 5. Summary Table Utility Approach Indifference Curve Approach Measurement Cardinal (Utils) Ordinal (Ranks) Key Law Law of Equi-Marginal Utility Diminishing MRS Equilibrium Condition