Local nonsatiation

Several things to note are: Local nonsatiation (LNS[2]) is often applied in consumer theory, a branch of microeconomics, as an important property often assumed in theorems and propositions.

Consumer theory is a study of how individuals make decisions and spend their money based on their preferences and budget.

[3][4] An indifference curve is a set of all commodity bundles providing consumers with the same level of utility.

Local nonsatiation is a key assumption in the Walras’ law theorem.

Indirect utility function v(p, w) where p is a vector of commodity prices, and w is an amount of income.

In both EMP and UMP consumers are assumed to have locally nonsatiated preferences.

Competitive equilibrium may fail to exist if consumers are satiated, thus are assumed to be nonsatiated.

[5] The first fundamental theorem of welfare economics states that any competitive equilibrium in a market, where consumers are locally nonsatiated is pareto optimal (pareto optimal is when no changes in economy can make one party better off without making another party worse off).