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CUET Economics 2023 PYQs28 May Shift 2. Free, no login required.

Micro

past year questions, CUET Economics 2023 28 May Shift 2

Consumer Behaviour

past year questions, Micro, CUET Economics 2023 28 May Shift 2

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

The indifference curve is :

Solution

✅ Correct Option: 4

An Indifference Curve is convex to the origin because of the diminishing Marginal Rate of Substitution (MRS). As the consumer substitutes one good for another, he is willing to give up less and less of the other good, making the curve bow towards the origin.

More from this set:

Question 42

All the points on Indifference curve represent :

Question 43

A rational consumer is the one who has :

Question 44

Which is an example of substitute good ?

Question 45

If the budget line is tangent to an indifference curve at a point, absolute value of the MRS and the Budget line are __________ at that point.

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CUET Economics Past Year Questions (Topic-Wise)