Law of Equi Marginal
Equity
Dr Anju nJain
,LAW OF EQUI MARGINAL UTILITY
The Law of equi marginal Utility is another fundamental principle of Econo-mics. This Law
consumer equilibrium in utility analysis. This law is also called Gossen’s Second Law.
Consumer is rational & his aim is to obtain maximum satisfactionby distributin
income in different fields of satisfaction. Basis of this law is LAW OF SUBSTITU
According to which a consumer relplases less useful goods by more useful good
This law is also known as the Law of substitution or the Law of Maxi-mum Satisfaction.
Law of Equi-Marginal Utility
This law states that consumer will distribute his income between the various goods in such
that the utility derived from the last rupee spent of eacg good is equal.
The law states that a consumer should spend his limited income on different commodities in su
way that the last rupee spent on each commodity yield him equal marginal utility in order to ge
maximum satisfaction
, LAW OF EQUI MARGINAL UTILITY
We know that human wants are unlimited whereas the means to satisfy the
wants are strictly limited. It, therefore’ becomes necessary to pick up the mo
urgent wants that can be satisfied with the money that a consumer has. Of th
things that he decides to buy he must buy just the right quantity. Every prud
consumer will try to make the best use of the money at his disposal and deriv
maximum satisfaction.
Equity
Dr Anju nJain
,LAW OF EQUI MARGINAL UTILITY
The Law of equi marginal Utility is another fundamental principle of Econo-mics. This Law
consumer equilibrium in utility analysis. This law is also called Gossen’s Second Law.
Consumer is rational & his aim is to obtain maximum satisfactionby distributin
income in different fields of satisfaction. Basis of this law is LAW OF SUBSTITU
According to which a consumer relplases less useful goods by more useful good
This law is also known as the Law of substitution or the Law of Maxi-mum Satisfaction.
Law of Equi-Marginal Utility
This law states that consumer will distribute his income between the various goods in such
that the utility derived from the last rupee spent of eacg good is equal.
The law states that a consumer should spend his limited income on different commodities in su
way that the last rupee spent on each commodity yield him equal marginal utility in order to ge
maximum satisfaction
, LAW OF EQUI MARGINAL UTILITY
We know that human wants are unlimited whereas the means to satisfy the
wants are strictly limited. It, therefore’ becomes necessary to pick up the mo
urgent wants that can be satisfied with the money that a consumer has. Of th
things that he decides to buy he must buy just the right quantity. Every prud
consumer will try to make the best use of the money at his disposal and deriv
maximum satisfaction.
