Learning Contents:                                                             ·           Consumer’s Equilibrium: Two commodity case (Law of Equi-Marginal utility) ·          Consumer’s Equilibrium Schedule and its explanation Consumer’s equilibrium- Two commodity case A consumer is in a state of equilibrium when he spends his entire income on the purchase of one or more commodity in such a way that his level of satisfaction is maximized and has further no desire to change his level of expenditure.   The Law of diminishing marginal utility holds good in understanding the consumer’s equilibrium with respect to the purchase of one commodity. But in reality, a consumer spends his income on the purchase of more than one commodity, and in that situation; ‘ The Law of Equi-Marginal Utility’ helps in the optimum allocation of a consumer’s income. Law of  the Equi-marginal utility is also known as: a. Law of Substitution b . Law of maximum satisfaction c. Gossen’s Second L