CONSUMER EQUILIBRIUM

I = $12 Px = 2 Py = 1
Qx MUx Qy MUy
1 16 1 11
2 14 2 10
3 12 3 9
4 10 4 8
5 8 5 7
6 6 6 6
7 4 7 5
8 2 8 4
CONSUMER EQUILIBRIUM FORMULA
MUx = MUy
Px Py

CONSTRAINT
PxQx + PyQy = I
CONSUMER CONSUME VARIOUS
GOODS
MUx = MUy = MUL = MUs
Px Py PL Ps
 EXCHANGES
A B

Qx MUx Qy MUy Qx MUx Qy MUy

1 20 1 9 1 18 1 16
2 18 2 8 2 17 2 14
3 16 3 7 3 16 3 12
4 14 4 6 4 15 4 10
5 12 5 5 5 14 5 8
6 10 6 4 6 13 6 6
7 8 7 3 7 12 7 4
8 6 8 2 8 11 8 2
9 4 9 1 9 10 9 0
A consume 5 unit x with MUx = 12 4 unit y
with MUy = 6
B consume 9 unit x with MUx = 10 1 unit y
with MUy = 16
• B consume 9x = 10 usability and 1y = 16
usability
• Based on the explanation, so B willing to
exchange goods x with y as long as more
than 10/16 X 16
• A consume 5x = 12 usability and 4y = 6
usability
• Based on the explanation, so A willing to
exchange goods x with y as long as more
than 6/12 X 12