Class 11 Micro Economics: Consumer's Equilibrium
Chapter 2: Consumer's Equilibrium — understand how consumers maximise satisfaction using cardinal and ordinal utility approaches, the law of diminishing marginal utility, indifference curve analysis, and budget constraints. CBSE Class 11 Microeconomics notes covering 6 topics: Concept of Utility TU and MU, Law of Diminishing Marginal Utility, Consumer's Equilibrium Cardinal Approach, Indifference Curve Analysis, Budget Line and Budget Set, and Consumer's Equilibrium Ordinal Approach.
Topics(6)
Concept of Utility: TU & MU
Meaning of utility, measurement in utils and money, total utility, marginal utility, and TU-MU relationship. CBSE Class 11 Microeconomics notes
Law of Diminishing Marginal Utility
Statement, assumptions, and diagrammatic explanation of the Law of DMU — Gossen's First Law. CBSE Class 11 Microeconomics notes
Consumer's Equilibrium: Cardinal Approach
Consumer equilibrium using cardinal utility — single commodity (MU = Price) and two commodities (Law of Equi-Marginal Utility) with schedules and diagrams. CBSE Class 11 Microeconomics notes
Indifference Curve Analysis
Ordinal utility approach, indifference curve, indifference map, MRS, monotonic preferences, and properties of indifference curves. CBSE Class 11 Microeconomics notes
Budget Line & Budget Set
Budget line, budget set, algebraic expression, slope, price ratio, properties, and effects of changes in income and prices. CBSE Class 11 Microeconomics notes
Consumer's Equilibrium: Ordinal Approach
Consumer equilibrium using indifference curve analysis — conditions (MRS = Price Ratio, MRS falls), tangency approach, and comparison of cardinal vs ordinal utility. CBSE Class 11 Microeconomics notes