State the conditions to be satisfied for consumer’s equilibrium under cardinal and ordinal approach.

 What is production possibility curve (PPC)? How does a PPC provide an economy’s menu of choices?

In economics, consumer equilibrium refers to the situation where a consumer allocates their income in such a way that they maximize their satisfaction or utility from the consumption of goods and services. The conditions for consumer equilibrium differ under the cardinal and ordinal approaches. These two approaches, although addressing the same concept, do so with different assumptions regarding the measurement of utility.

### Conditions for Consumer Equilibrium under Cardinal Approach

The cardinal approach assumes that utility can be measured in absolute terms, using units such as "utils." According to this approach, a consumer achieves equilibrium when they allocate their income in a way that maximizes total utility. The specific conditions that need to be satisfied under this approach are:

1. Equal Marginal Utility per Unit of Money:
   The consumer will reach equilibrium when the marginal utility (MU) derived from the last unit of money spent on each good is equal. This can be represented mathematically as:
   \[
   \frac{MU_X}{P_X} = \frac{MU_Y}{P_Y} = \ldots = \frac{MU_n}{P_n}
   \]
   Where \( MU_X, MU_Y, \dots \) are the marginal utilities of goods X, Y, etc., and \( P_X, P_Y, \dots \) are their respective prices. This ensures that the consumer derives the maximum satisfaction from their limited income.

2. Marginal Utility Diminishes with Consumption:
   As more units of a good are consumed, the marginal utility derived from each additional unit of the good decreases. This is the law of diminishing marginal utility, and it ensures that the consumer allocates their income in such a way as to balance out the satisfaction gained from each good or service.

3. Income Exhaustion:
   The consumer's income should be fully exhausted. In other words, the consumer must spend all their income on the goods and services they are consuming. If some income is left unspent, the consumer has not reached equilibrium, as they could have allocated it in a ____ ___ ________ ___ _________ ___ ___ ___ ________ _______ _________ ______.
_____ ________ _______ ________ __________ ____ ____ ____ _____ _________.
_____ _____ ______ _________ ______ ___ ________ ____.
____ __________ ___ ____ ______.
_________ ___ ______ _________ ________ _________ ______.
_______ _____ ______ __________ __________ _____ _________ ___ __________.
____ ___ _________ ____ ______ _____ _______ _____ ______ ________.
_______ ______ _______ ______ __________ ________.
______ _________ _________ _____ __________ ___ ___ _____ ____ ______ _______.
________ _____ ___ __________ ______ __________ ___ ______.
_____ _______ _________ ___ __________ _________ ____ _______ _____ _________ _________ __________.
_______ ______ _______ ____ _________ ________ _________ _________.
_________ ____ __________ ________ ________ ____ _____ ________ _______ _______.
____ ________ ________ _____ ____ _______.
_______ _______ _____ ________ _______ __________ ___ _______ ___ ______.
________ _____ _____ __________ ___ _____.
______ ______ ______ ___ _________ _________ ______ ______.
________ __________ _________ ________ ______ ___ _______.
_______ _______ _______ ______ ______ ________ _________ _______ ____.
______ _____ ________ _____ ___ _________ _________ ___ __________.
___ __________ __________ ______ __________ ___ __________ _________ ______.
________ ________ _____ ____ ______ ______ ______ ___ ________.
__________ ______ ______ ___ ________ ________.
_____ __________ _________ _________ _______ _________ ___ ________ ______ ____ ______.
_________ ________ ____ ___ ____ __________ _____ __________ ________.
___ _______ ____ ______ __________ __________ _______ __________.
_____ ________ _______ _________ ___ ______ _________ ______ ___ _____ ______ __________.
______ __________ _________ _______ _____.
_______ __________ ___ __________ ___ _____.
___ _____ ________ _______ _________ __________ ______ ______ _______ _______.
________ __________ _________ _________ ________ ________ _________ _______ _______ __________ _______.
__________ _______ ________ __________ _______ ___ _______.
_______ _________ _____ __________ ___ _______ _______ __________.
____ ____ _____ ________ ______ _________ ______ _________ _______ ___ _____.
_______ ____ _____ _________ ____ ______ ____ _________ _________ _________ _______ ___.
__________ ______ _____ __________ _________ ________ _______ ____ _______ ___ ____.
____ _______ _______ _____ _______ ____.
______ ________ ______ ____ ____ ________ __________.
_____ ______ _____ _______ _____.
_______ _________ __________ ________ _____ _____ ___ ________ ________ ______ ____.
_____ _________ ________ _______ _______ __________ ________ _________ _________ ___ _____ ______.
_______ ______ ____ ___ _____ ______.
______ ________ _________ _____ _________ ________ _________.
______ ____ _______ __________ ___ _________ ____ __________ __________ _____ _____.
_________ ____ ________ ____ _________ ________ _______ ________ ______ ___.
________ ___ ______ __________ _______.
__________ _______ ________ ______ _______ ________ __________ _____ _________ ____.
___ _____ ____ ______ ____ _______ ____ ________ ____ ___.
____ __________ _____ ___ _______ _________ ______ ___ _____ ___ ________ _________.
___ ________ __________ ___ ___ ______.
____ _____ ______ _____ ____ __________ ________.
_____ ______ ______ _____ ________.
__________ _______ _______ ___ ______ ________ _______ ___ _________ _____ ____ _____.
___ _____ _______ _________ ________ ____.
_______ ________ ______ ____ _________ _________ _____ ________.
________ ______ ____ ________ ____ _____ ___ ______ _____ _______ _____ _______.
___ _________ ___ __________ ____ _________ _________ _________ ________ __________.
___ _____ ____ ______ ____ _______ _________ ____ _________.
_________ ______ _________ ___ ___ _________ ____.
____ ______ ______ ______ ___ _________ ______ _____.
______ ________ ________ ______ __________.
______ ___ ________ _______ _____ ________ ______ _________ _________.
_____ ____ ______ ____ _____ ______.
________ ___ __________ __________ ________ _____ _______ _____ ____ ________.
_________ ____ ____ _____ _______ _______ ____ _____.
_______ _______ ____ ________ _________ _______.
_______ _________ ______ __________ ______ ______ ______ ___ ____.
_______ ___ ___ __________ __________ ________ _______ __________ ____ __________ _____.
_______ _____ ____ _____ ____ _____ ___ ______ ____ _____.
___ __________ ___ _________ _______.
___ _________ _____ _____ ________ __________ ______ _____ ____ ______.
________ ___ _________ __________ ______.
______ __________ ___ _________ __________ _______ _______ __________ ____ ______ ___.
_________ ____ ______ ___ ________ ___.
___ ___ ______ _____ __________.
______ ________ ________ ____ _______ _______ ______ ___ ___.
___ ____ _____ ______ ____ _______ ____ ______ ___ _________ ______ ___.
_______ ________ _________ ___ __________ __________ __________ __________ _________ ___ ____ __________.
_____ ______ __________ _________ ___ ______ ______ ________ ________ ___ _______ ________.
________ __________ ___ _________ _______ ______ ______ ___ ________ ______ _____.
___ ______ _____ ______ __________ __________ ________ ____ _________ ______ ______ __________.
____ ___ ___ _____ _______.
_____ __________ __________ ________ _____ _________ ______ __________ _________ ___ __________ _________.
_____ ______ _____ ______ _________ ______ ___ ___ _______ _____.
______ _________ __________ __________ ____ _________ _______ ________.
__________ ____ _________ __________ _________ _____ ______ ____.
________ ________ _____ __________ ______ ________.
______ ______ ___ __________ _____ _______ _______ ________ ______ ___.
________ ______ ________ _______ _____ ____ ________ ___ ________ _______ _________ ______.
__________ ____ __________ _______ _____ _________ __________ _____ ___.
_____ _____ ______ _________ ______ _____ _______ ____ __________ ______.
___ _____ _________ _______ ________ __________ ________ ______ ________ ______.
_______ ____ __________ ________ ____ ____ ____ ___ __________ ________ ___.
_________ ________ _______ _______ ________ ____ ____.
_______ ___ ___ ________ ______ ______ ____ _________ ______.
_____ _________ ____ _____ _________ _______ _______ ___ ____ ____.
_____ _______ _________ ___ ______ __________ _______.
________ ____ _________ ___ ________ _____ ___ ________ __________ __________ _________ _____.
_______ _______ ________ __________ _______ ___ ____ _______ ___.
____ _____ __________ _________ ______ __________.
_______ _____ ___ ___ ______ ______ ______ ______.
__________ _____ ___ __________ ___ ____ ________ __________ _____ ______ ___.
__________ _______ ______ _________ ________ ________ _______ _______ _______ _______.
__________ _________ _____ ________ ___ ___ _____ ______ _______.
__________ ______ ________ _____ ___ __________ ________ ___.
______ _____ _________ ________ ___ _______ _______ __________ ______ _______ ________.
____ _____ __________ ______ _____ ________ ___ ________ ______ ________ ____.
____ ______ _________ ____ ____ _________.
________ ______ ______ _______ ______ ________ ________ ______.
_____ ___ ______ ___ ________ ______.
_______ _____ ________ __________ ________ ________ _____ ___ ___ _______.
_____ ________.
Get Full Answer on WhatsApp