Consumer Equilibrium
Definition
The point at which a consumer maximizes satisfaction from spending a given income on goods and services. Under Cardinal approach: MU of each good / Price = MU of money. Under Ordinal approach: the consumer reaches equilibrium at the point of tangency between the Budget Line and the highest attainable Indifference Curve.
Example
"A consumer buying apples and oranges achieves equilibrium when MU of Apple / Price of Apple = MU of Orange / Price of Orange. Buying more of either would reduce total utility."