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At the point of consumer equilibrium the slope of the budget line is equal to the?
Wiki User
∙ 12y ago
Marginal rate of substitution
Wiki User
∙ 12y ago
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Which point on the graph represents the equilibrium price?
Supply and demand graphs meet at the equilibrium price.
Points R S and T are collinear and point S is between points R and T. The coordinate for point R is 20. If RT equal 24 units and ST equal 2RS units what is a coordinate for point S?
28
What is a closed plane figure with every point equal distance from the center?
A circle.
Is the angle and arc of an circle always the same?
yes they are always same as arc is being drawn from a middle point and the distance of 2 sides is equal therefore angles are equal
When the graph of a quadratic equation has its turning point on the x-axis how many roots does it have?
It will have two equal roots.
What is a budget line and how is it useful in reaching consumer equilibrium?
it is a line showing all possible combinations of two goods(goods-1 and good-2) which a consumer can buy with his given money income and the price of the goods prevailing in the market.anywhere on the budget line the consumer spends his entire income on either good1 or good2 or both the goods. each point on the budget line indicates the different combinations of good1 and good2 which a consumer can buy with his income. in indifference curve analysis consumer attains his equilibrium when the slope of price line/budget line is equal to the slope of indifference curve.equilibrium is attained at that point where ic curve is tangent to the price line.....
What is Consumer equilibrium under ordinal utility approach?
Consumer equilibrium is the point where consumer attains highest level of satisfaction. There are two conditions of equilibrium under ordinal approach 1- Necessary Condition: 'Budget line is tangent to the highest possible indifference curve.' 2- Sufficient Condition: 'At equilibrium, Indifference curve must be convex to the origin' Thus, at equilibrium , Px/Py (absolute slope of Budget line) = dy/dx (absolute slope of Indifference Curve) (In simple words, it'd determination of consumer's equilibrium with the help of Indifference curve.)
What is the relationship between indifference curve and budget constraint?
The tangency point of Indifference curve and budget line shows the Marginal Rate of Substitution between X and Y commodities. Consumer's equilibrium is achieved at that point.
What place is the place where supply and demand curves intersect?
The point where supply and demand intersect is the equilibrium point. This is the point where quantity demanded and quantity supplied are equal.
Process of price determination?
Price is determined at the point of equilibrium. Equilibrium is a point of balance. In other words, equilibrium is the point at which quantity demanded and quantity supplied is equal. That is, market equilibrium refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. This price is called equilibrium price.
What is equilibrium -Gradpoint?
The point at which quantity demanded and quantity supplied are equal
What is the tangent between a budget constraint and an indifference curve on an indifference map?
It is the equilibrium point of utility maximization.
What is forces equilibrium at a point?
When the (vector) sum of all forces equal zero.
Define consumer equilibrium?
It is atime when a person reach the maximum point of satisfaction after consume more a certain commodity at a time.
What is the point at which quantity supplied and quantity demanded are the same?
When supply and demand are equal, that is a state of equilibrium.
What is the point at which quantity demanded and quantity supply are the same?
When supply and demand are equal, that is a state of equilibrium.
What is the point at which quantity demanded and quantity supplied are the same?
When supply and demand are equal, that is a state of equilibrium.
