Assumption: The consumer spends their entire income on a single good (say, Good X), and the price is fixed.
There are two primary approaches to finding the equilibrium point in Class 11 economics: Ordinal Utility Approach (Indifference Curve Analysis) 1. Cardinal Utility Approach (Utility Analysis) consumer equilibrium class 11 notes free
). To make a fair comparison, utility is converted into monetary terms using the Marginal Utility of Money ( MUMcap M cap U sub cap M Assumption: The consumer spends their entire income on