Chapter 3 | class 11th |consumer's equilibrium- utility analysis(microeconomics) Hindi explanation
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Consumer EquilibriumThe state of balance
Consumer Equilibrium
The state of balance obtained by an end-user of products that refers to the number of goods and services they can buy, given their existing level of income and the prevailing level of cost prices. Consumer equilibrium permits a customer to get the most satisfaction possible from their income.
According to Mashallian utility analysis, when expenditure of aconsumer has been completely adjusted, that is, when marginalutility in each direction of his purchases is the same, it is calledconsumer
's equilibrium. ... Adjustment of wants to one another and to his environments is a sign of consumer's equilibrium.
Introduction
This chapter consists of a detailed account of concepts of Utility, Law of Diminishing Marginal Utility, Budget line, Budget Constraint, Monotonic Preferences, Indifference Curve, Consumer Equilibrium in Cardinal (single and several Commodities) and Ordinal (indifference curve) Approaches.
Utility
1. Utility is the power or capacity of a commodity to satisfy human wants. Alternatively, utility of a commodity means the amount of satisfaction that a person gets from consumption of a good or service.
2. There are two types of Utility:
Cardinal Utility Approach (Marginal Utility Analysis or Marshall Utility Analysis):
It states that the satisfaction the consumer derives by consuming goods and services can be measured with a number.
Cardinal utility is measured in terms of utils (the units on a scale of utility or satisfaction).
According to cardinal utility the goods and services that are able to derive a higher level of satisfaction to a consumer will be assigned higher utils and goods that result in a lower level of satisfaction will be assigned lower utils.
Cardinal utility is a quantitative method that is used to measure consumption satisfaction.
Ordinal utility Approach (Indifference Curve Analysis or J.R. Hicks analysis):
It states that the satisfaction the consumer derives from the consumption of goods and services cannot be measured in numbers.
Rather, ordinal utility uses a ranking system in which a rank is provided to the satisfaction that is derived from consumption.
According to ordinal utility, the goods and services that offer a customer a higher level of satisfaction will be assigned higher ranks
and the goods and services that offer a lower level of satisfaction will be assigned lower ranks.
Ordinal utility is a qualitative method that is used to measure consumption satisfaction.
Cardinal Utility
3. Total utility is the total psychological satisfaction a consumer obtains from consuming a given amount of a particular good. Alternatively, total utility is the sum of marginal utilities obtained from consumption of successive units of a commodity. It is measured in utils.

TU = MUj + MU2 + MU3 + MUN
= IMU
class 11th microeconomics all chapters links
chapter 1 Microeconomics chapter 1 class 11th (...
chapter 2 part1 economics class 11th,chapter 2(...
chapter 3 Chapter 3 | class 11th |consumer's e...
chapter 4 Class 11th chapter 4 | microeconomics...
chapter 5 Class 11th chapter 5 (theory of deman...
chapter 6 Class 11th ||chapter -6 of microecono...
chapter 7 part#1 Class 11th |chapter 7th microe...
chapter 8 part#1 chapter 8 MICROECONOMICS cla...
chapter 9 part#1 Class 11th MICROECONOMICS chap...
chapter 10 part#1 Class 11th MICROECONOMICS chap...
The state of balance obtained by an end-user of products that refers to the number of goods and services they can buy, given their existing level of income and the prevailing level of cost prices. Consumer equilibrium permits a customer to get the most satisfaction possible from their income.
According to Mashallian utility analysis, when expenditure of aconsumer has been completely adjusted, that is, when marginalutility in each direction of his purchases is the same, it is calledconsumer
's equilibrium. ... Adjustment of wants to one another and to his environments is a sign of consumer's equilibrium.
Introduction
This chapter consists of a detailed account of concepts of Utility, Law of Diminishing Marginal Utility, Budget line, Budget Constraint, Monotonic Preferences, Indifference Curve, Consumer Equilibrium in Cardinal (single and several Commodities) and Ordinal (indifference curve) Approaches.
Utility
1. Utility is the power or capacity of a commodity to satisfy human wants. Alternatively, utility of a commodity means the amount of satisfaction that a person gets from consumption of a good or service.
2. There are two types of Utility:
Cardinal Utility Approach (Marginal Utility Analysis or Marshall Utility Analysis):
It states that the satisfaction the consumer derives by consuming goods and services can be measured with a number.
Cardinal utility is measured in terms of utils (the units on a scale of utility or satisfaction).
According to cardinal utility the goods and services that are able to derive a higher level of satisfaction to a consumer will be assigned higher utils and goods that result in a lower level of satisfaction will be assigned lower utils.
Cardinal utility is a quantitative method that is used to measure consumption satisfaction.
Ordinal utility Approach (Indifference Curve Analysis or J.R. Hicks analysis):
It states that the satisfaction the consumer derives from the consumption of goods and services cannot be measured in numbers.
Rather, ordinal utility uses a ranking system in which a rank is provided to the satisfaction that is derived from consumption.
According to ordinal utility, the goods and services that offer a customer a higher level of satisfaction will be assigned higher ranks
and the goods and services that offer a lower level of satisfaction will be assigned lower ranks.
Ordinal utility is a qualitative method that is used to measure consumption satisfaction.
Cardinal Utility
3. Total utility is the total psychological satisfaction a consumer obtains from consuming a given amount of a particular good. Alternatively, total utility is the sum of marginal utilities obtained from consumption of successive units of a commodity. It is measured in utils.

TU = MUj + MU2 + MU3 + MUN
= IMU
class 11th microeconomics all chapters links
chapter 1 Microeconomics chapter 1 class 11th (...
chapter 2 part1 economics class 11th,chapter 2(...
chapter 3 Chapter 3 | class 11th |consumer's e...
chapter 4 Class 11th chapter 4 | microeconomics...
chapter 5 Class 11th chapter 5 (theory of deman...
chapter 6 Class 11th ||chapter -6 of microecono...
chapter 7 part#1 Class 11th |chapter 7th microe...
chapter 8 part#1 chapter 8 MICROECONOMICS cla...
chapter 9 part#1 Class 11th MICROECONOMICS chap...
chapter 10 part#1 Class 11th MICROECONOMICS chap...
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