The sum total of satisfaction derived from consuming all units of a commodity.
When MU is zero, TU reaches its maximum point (Point of Satiety). When MU becomes negative, TU starts declining. 2. The Law of Diminishing Marginal Utility (DMU) consumer equilibrium class 11 notes free
The IC must be convex to the origin at the point of equilibrium. 3. Key Terms for Exams The sum total of satisfaction derived from consuming
This guide covers the core concepts, theories (Utility and Indifference Curve Analysis), and conditions required for a consumer to achieve maximum satisfaction. 1. Introduction: What is Consumer Equilibrium? theories (Utility and Indifference Curve Analysis)