A consumer is said to be in equilibrium, if
- he is able to fulfil his need with a given level of income
- he is able to live in full comforts with a given level of income
- he can fulfil his needs without consumption of certain items
- he is able to locate new sources of income
Explanation
Option (a) is correct
- In economics, consumer equilibrium refers to a situation where the consumer maximises satisfaction (utility) given his limited income and prices of goods. At equilibrium:
- The consumer has no desire to change the combination of goods he is consuming.
- He achieves maximum satisfaction possible within his budget constraint.
