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



 

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