Micro

Consumer Behaviour

Easy

Budget set of a consumer is defined as:

The collection of all bundles that the consumer can buy with the given income at the prevailing market price.

The collection of all bundles that exactly cost the given income of the consumer at prevailing market price.

The collection of all bundles that the consumer desires to purchase.

The collection of all bundles that lies on budget line.

✅ Correct Option: 1

The budget set is defined as the set of all bundles that a consumer can afford to buy given the income and prevailing market prices. It includes all points on and inside the budget line. Option 2 and 4 describe only the budget line, not the entire budget set.

2022: 19 July Shift 2

Find the value of price elasticity of demand of a good whose demand decreases by 20% for an increase in its price of 10%.

2025: 27 May Shift 2

The total sum consumer spends on cloth in 2022?

2025: 21 May Shift 1

Arun spends 200 rupees on good X irrespective of its price whereas Varun buys 10 units of Good X irrespective of its price. The respective values of the price elasticity of demand for Good X for both the consumers is

2025: 13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Analysis assumes that level of utility can be expressed in numbers.	(I) Cardinal Utility
(B) Change in total utility due to consumption of one additional unit of a commodity	(II) Law of Diminishing Marginal Utility.
(C) Marginal utility from consuming each additional unit of a commodity declines as its consumption increases.	(III) Marginal Utility
(D) The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same.	(IV) Marginal rate of substitution

Choose the correct answer from the options given below:

2023: 28 May Shift 2

A rational consumer is the one who has :

2025: 16 May Shift 1

Individual demand for a good does not depend upon which of the following?

Budget set of a consumer is defined as:

Solution

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