Equilibrium of a consumer refers to a situation where the consumer is maximizing his satisfaction by spending his entire budget on the goods and services that he prefers. In this situation, the consumer's price line is tangent to the indifference curve. Let's understand this concept in detail:

Indifference Curve:
An indifference curve is a graph that shows different combinations of two goods that give the consumer the same level of satisfaction. It is generally downward sloping from left to right, indicating that as the quantity of one good increases, the consumer is willing to give up some of the other good to maintain the same level of satisfaction.

Price Line:
The price line is a straight line that shows the various combinations of two goods that a consumer can buy with a given amount of income at given prices.

Equilibrium:
The consumer's equilibrium occurs when he spends his entire income on the goods and services that he prefers. At the equilibrium point, the consumer's price line is tangent to the highest attainable indifference curve.

Tangency:
Tangency refers to the point where the price line touches the indifference curve. It indicates that the consumer is maximizing his satisfaction by spending his entire budget on the goods and services that he prefers. At this point, the slope of the price line is equal to the slope of the indifference curve, which means that the consumer is indifferent between the two goods.

Conclusion:
In conclusion, when the consumer is in equilibrium, his price line is tangent to the indifference curve. This indicates that the consumer is maximizing his satisfaction by spending his entire budget on the goods and services that he prefers.

Tangent