consumer equilibrium


The point at which a consumer reaches optimum utility, or satisfaction, from the goods and services purchased given the constraints of income and prices. This is based on the assumption that consumers attempt to get maximum utility from their purchases and that competition exists for the item in question. Equilibrium is reached when the consumer purchases the assortment of goods which best meets his satisfaction requirements given his financial constraints.

Use this term in a sentence

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
consumer durables consumer finance