Consumer equilibrium, Managerial Economics

Assignment Help:

Consumer Equilibrium

To demonstrate the consumer's equilibrium i.e. the point at which the consumer maximizes utility with a given budget, we need to combine the indifference map and the budget line.

1283_consumer equilibriu.png

The consumer obtains maximum utility from a budget of AF by choosing the combination of X and Y represented by C, where the marginal rate of substitution is equal to the relative prices of X and Y. 


Related Discussions:- Consumer equilibrium

Firm's short-run elasticity, A firm's technology needsit to combine 5 pers...

A firm's technology needsit to combine 5 person-hours of labor with 3 machine-hours to make 1 unit of output. The firm has 15 machines in place and the wage rate rises from $10 per

Limitations, limitations of managerial ecomomics

limitations of managerial ecomomics

Salvatore, manual problems solution of demand theory

manual problems solution of demand theory

Identity economics help to explain economic questions, What is identity eco...

What is identity economics? How does identity economics help to explain economic questions that standard economics fails to address?

Cross-elasticity of demand, Cross-elasticity is the measure of responsivene...

Cross-elasticity is the measure of responsiveness of demand for a commodity to the changes in price of its substitutes and complementary goods. For example, cross-elasticity of dem

Structural unemployment, Structural unemployment    Caused by structura...

Structural unemployment    Caused by structural changes such that there exist: Cyclical unemployment : During depression, prices are too low and profit margins remain d

Excise tax and its impact on manufacturing industry, excise tax and its imp...

excise tax and its impact on manufacturing industry with respect to demand and supply curves

Explain cost output relationship, Explain cost output relationship with ref...

Explain cost output relationship with reference to: a.    Total fixed cost and output b.    Total variable cost  and output

Generate a computer code for solidification situation, Generate a computer ...

Generate a computer code to simulate the following solidification situation during a casting process: The material is a well-known polymer known as PEEK (polyetheretherketo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd