1. Explain consumers equilibrium, in case of Single commodity, with the help of utility schedule.

   

The law of D.M.V can be used to explain consumers equilibrium in case of a single commodity. Therefore, all the assumptions of Law of D.M.U are taken as assumptions of consumer's equilibrium in case of single commodity.

A consumer purchasing a single commodity will be at equilibrium, when he is buying such a quantity of   that commodity which gives him maximum satisfaction. The number of units to be consumed of the given commodity by a consumer depends on 2 factors.

 1. Price of the given commodity.
 2. Expected utility from each successive unit.

To determine the equilibrium point, consumer compare the price of the given commodity with its utility. Being a rational consumer, he will be at equilibrium when marginal utility is equal to price paid for the  commodity.

 Consumer Equilibrium in case of Single Commodity.
 

Units of x	Price (Px)	Marginal Utility	Marginal Utility in units	Difference maximum
1	10	20	20	10
2	10	16	16	6
3	10	10	10	0
4	10	4	4	-6
5	10	0	0	-10
6	10	-6	-6	-16