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 ___ _______ ____ _____ _______ _______ ________ ______ ________ _________ _____ __________.
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