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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
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CONSUMER'S EQUILIBRIUM (IC ANALYSIS)

CONSUMER'S EQUILIBRIUM
Meaning : Consumer's equilibrium shows a situation in which the consumer purchases such a combination of commodities that he gets maximum satisfaction from his given income and with given prices of the commodities .

Assumptions 
a)Prices are given to consumer.
b)Consumer's income is also given.
c)The consumer knows about the prices of commodities and possible combinations of two commodities which he can choose.
d)The consumer can spend his income in small amounts also.
e)The consumer is rational and wants to obtain the maximum satisfaction.
f)There is perfect competition.

Price line : Price line is a line that shows all those combinations which can be bough bt the consumer at given prices.It is also called as Budget line or. Price -Opportunity line or Consumption-Possibility line.

Cups of coffee.                            Biscuits
(Rupees one per cup).             (Rupees 0.4 per )
              0.                                             100
              1.                                               80
              2.                                               60
              3.                                               40
              4.                                               20
              5.                                                 0
{Note: These points can be plotted on graph to form price line }

The schedule given above shows various combinations available to consumer at given prices with his given income.He has to choose combinations available to him on graph .
These points on the graph shows a straight line called as price line sloping from left down to right. It has only one slope throughout which shows the constant price ratio for two commodities. It has a negative slope which shows that consumer can have more of one commodity only by sacrificing some of the other. The point of the equilibrium must be a point on this line.

Equilibrium of the consumer
The consumer's equilibrium point is a common point between price line and one of the IC . The consumer is interested in the common point wich is on the highest If as it will provide him maximum satisfaction. This will also be the point where price line is intersecting and will be the point of equilibrium to the consumer . This point shows  combination of two commodities which consumer can buy within his given income and is also on highest IC the consumer can reach equilibrium .

Equilibrium condition 
a)Price of A
 _____________ = MRS AB
   Price of B
It states that the rate at which individual is willing to substitute commodity A  for commodity B must equal to the rate at which he can substitute A and B in the market at given prices.
b) The  rate of substitution should be diminishing at the point of equilibrium.
c)The IC should be tangent to the price line at point of equilibrium.
D)The slope of price line should be equal to slope of IC.
e) The IC should be convex to the origin at the point of equilibrium.

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