Micro

Consumer Behaviour

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.

All the points on Indifference curve represent :

The same price

Bundles which are considered indifferent by the consumer

Straight line

Bundles which are considered same by the consumer

✅ Correct Option: 2

An Indifference Curve is the locus of all combinations of two goods that give equal satisfaction to the consumer. Hence, all points on a single indifference curve represent bundles that the consumer is indifferent between - he has no preference for one over the other.

Question 41

The indifference curve is :

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.

All the points on Indifference curve represent :

Solution

More from this set:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)