Answer to Question #222335 in Microeconomics for Zeki

Question

Explain the difference between the equilibrium conditions of the consumer under cardinal utility
approach and ordinal utility (indifference curves) approach.

Answer 1

Based on ordinal utility, a customer gains equilibrium consumption basket of products if he meets criterion of gaining as much as he can provided a set of preferences. It translates to indifference curve slope being same as budget constraint slope.