When the indifference curve is good, that is, when it is quasi-concave, and when the budget bundle is tangent, it is the equilibrium of maximizing utility. However, some indifference curves will have corner solutions. At this time, the angle between the coordinate axis and the budget beam is a balance point, but it is not a tangent point. When a completely complementary and completely substituted indifference curve appears, it is not tangent, and there is a special intersection point as the maximum equilibrium point.
Consumer equilibrium is to study how a single consumer distributes limited monetary income when purchasing various commodities, so as to obtain the maximum utility. In other words, it is an equilibrium condition to study the utility maximization of a single consumer with a given income. Equilibrium here refers to the relative static state that consumers neither want to increase nor decrease the purchase quantity of any commodity when maximizing utility.
Extended data
The tangent point between the consumption possibility line and the indifference curve is the consumer equilibrium point. Buying according to the quantity collocation of various commodities represented by this point not only conforms to the income of consumers, but also brings the greatest satisfaction to consumers.
It is an equilibrium condition to study the utility maximization of a single consumer under a given income condition. Consumer equilibrium is to buy a certain number of various commodities under the restriction of given income and various commodity prices in order to achieve the most satisfactory degree, which is called consumer equilibrium. Consumer equilibrium is the core of consumer behavior theory.