As a consumer consumes more units of a commodity, the utility derived from each successive unit decreases.
18;write_to_target_document7;default0;106;18;write_to_target_document1a;_7Bvuafm6E_CL4-EPy9SgsAE_20;a5; 0;1c8;0;663; Case A: Single Commodity Equilibrium 0;16; 0;4af;0;15b3; consumer equilibrium class 11 notes free
| Aspect | Single Commodity | Two Commodity | | :--- | :--- | :--- | | | ( MU_x = P_x ) | ( \fracMU_xP_x = \fracMU_yP_y ) | | Rationale | Law of DMU | Law of Equi-Marginal Utility | | If MU > Price | Buy more | Shift spending to higher MU good | | If MU < Price | Buy less | Shift spending away from lower MU good | | Graph | MU curve cuts Price line | No single graph; uses ratio tables | As a consumer consumes more units of a