what is Consumer's Equilibrium ? How a consumer can be in equilibrium under Ordinal Approach?

Question

anonymous · Answer

Consumer equilibrium would generally be where the consumer's budget line (what he has to spend) is just contingent to one of the many Indifference Curves that repesent his Indifference between various quantities of the two products in the simplified two product scenario.  At that point, he is purchasing all that he can of the two products at the point where he is Indifferent to any other combination of the two products.   Does that make any sense.  It is a technical answer and require a graph which I can show you.  wmw|dw:1338373497391:dw|