In this essay we will discuss about the effects of changes in income and price on consumer’s equilibrium. A consumer is in equilibrium when he maximizes his satisfaction subject to a limited money income and given market prices of goods and services. Fig. 3.11 illustrates the consumer's equilibrium. The budget line is AB and the indifference curves I, II, III [...]
Here is a compilation of term papers on the ‘Laws of Consumption’. Find paragraphs, long and short term papers on the ‘Laws of Consumption’ especially written for school and college students. Term Paper Contents: Term Paper on the Utility- A Basis of Consumer Demand Term Paper on the Law of Diminishing Marginal Utility Term Paper on the Cardinal and Ordinal [...]
Edgeworth diagram is divided into two types. The horizontal side of the box measures a fixed total output of good 1 and the vertical side measures a fixed total output of good 2. Individual 1's consumption of good 1 is measured horizontally from the origin at o1. His/ her consumption of good 2 is vertical from o1. In the diagram, [...]