1.
Consumer Equilibrium
Yashashvi
Khandelwal’s
Presentation on

2.
Acknowledgement
I would like to convey my heartfelt gratitude to Mrs. Omika
Nag Ma'am for her tremendous support and assistance in the
completion of my presentation . I would also like to thank our
Principal, Mrs. Swati Ma'am, for providing me with this
wonderful opportunity to work on a presentation with the topic
median. The completion of the presentation would not have
been possible without their help and insights.
Yashashvi Khandelwal
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Table of
Contents
Introduction
Consumer and Equilibrium
Equilibrium Concept of
Utility
Relationship Between TU&MU
Law of Diminishing Marginal
Utility
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Introduction
Consumer's Equilibrium means a state of maximum satisfaction. A
situation where a consumer spends his given income purchasing
one or more commodities so that he gets maximum satisfaction
and has no urge to change this level of consumption, given the
prices of commodities, is known as the consumer's equilibrium.
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Consumer and Equilibrium
• Consumer - Consumers are people or organizations that purchase
products or services. The term also refers to hiring goods and services.
They are humans or other economic entities that use a good or service.
Furthermore, they do not sell on that item that they bought.
• Equilibrium - Equilibrium is a stage at which rate of forward reaction is
equal to rate of backward reaction. It refers to a situation when a
consumer gets maximum satisfaction by spending his given income
across different goods and services.
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Concept of Utility

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Utility And Its Types
• Utility is the power or capacity of a commodity to satisfy human wants.
Utility is subjective and cannot be measured quantitatively, yet for
convenience sake it is measured in units of pleasure or utility called
utils.
• Total utility - The total satisfaction a consumer gets from a given
commodity/service or Sum of marginal utility is known as total utility. TU=Σ
• Marginal utility - An addition made to total utility by consuming an extra
unit of commodity. Sum of marginal utilities derived from various goods
is known as total utility.MU = 𝑇𝑢𝑛 − 𝑇𝑈𝑛−1.
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Relationship Between
MU and TU

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• When MU is positive TU
rises.
• When MU is zero TU is
maximum.
• When MU is negative, TU
falls.

10.
Law of Diminishing Marginal
Utility
• It states that as the consumer consumes more and more units
of a commodity, the marginal utility derived from each
successive units goes on diminishing.
• Demand for a commodity refers to the quantity of a commodity
which a consumer is willing to buy at a given price in a given
period of time.
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Biliography
• www.google.com
• Introduction to Microeconomics by T.R Jain and V.K Ohri
• www.slideshare.com
• www.marketbusinessnews.com
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Thank you