Explain using diagrams the consumers equilibrium …

Consumer’s Equilibrium - A consumer shall be in equilibrium where he can maximize his satisfaction subject to his budget constraint and does not want to bring any change in it. Indifference curve approach explains the consumer equilibrium with the help of indifference map and budget line.
Conditions of Consumer’s Equilibrium – If consumer is consuming two goods say good X and good Y. Then at equilibrium point
i) Budget line should be tangent to indifference curve i.e. slope of indifference curve and budget line is equal to each other. It means MRS_xy = PX/PY
ii) Indifference curve should be convex to the point of origin i.e. MRS_XY is decreasing. We can explain it with the help of following diagram In diagram, AB is budget line and three indifference curves are IC₁, IC₂ and IC₃. The various combinations of good X & good Y which consumer can purchase with his given income are M, E and N. But M & N lie on IC₁ whereas E lies on IC₂. Since E is on higher indifference curve, so it will give more satisfaction to the consumer as compared to M & N. At point E budget line is tangent to IC₂ and IC₂ is convex to origin. So E is equilibrium point where consumer will get maximum satisfaction by consuming OX₁ quantity of good X and OY₁ quantity of good Y.