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.

A rational consumer is the one who has :

Many set of bundles

Monotonic preference

With high budget

Not ready to substitute one good for the other

✅ Correct Option: 2

A rational consumer has monotonic preferences, meaning he always prefers a bundle containing more of at least one good and no less of any other good. This rationality drives the consumer to always aim for the highest possible indifference curve within the budget set.

Question 41

The indifference curve is :

Question 42

All the points on Indifference curve represent :

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.

A rational consumer is the one who has :

Solution

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