Class 12 Micro Economics - Chapter Theory of Consumer Behaviour NCERT Solutions | Suppose a consumer wants to consume two
Suppose a consumer wants to consume two goods which are available only in
integer units. The two goods are equally priced at Rs 10 and the consumer’s
income is Rs 40.
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40.
P1 = Rs.10
P2= Rs.10
M = Rs. 40
Budget set = P1X1+P2x2≤ M
10X1+10x2 ≤ 40
The bundles that are available to the consumer should cost less than or equal to Rs40.
Horizontal intercept =
Vertical intercept =
Slope =
The bundles in the shaded region (∆AOB) are all available
to the consumer, including the bundles lying on the line
AB.
(0, 0) (0, 1) (0, 2) (0, 3) (0, 4)
(1, 0) (1, 1) (1, 2) (1, 3) (1, 4)
(2, 0) (2, 1) (2, 2) (2, 3) (2, 4)
(3, 0) (3, 1) (3, 2) (3, 3) (3, 4)
(4, 0) (4, 1) (4, 2) (4, 3) (4, 4)
(ii) The coordinates that lie on the line AB cost exactly the same as the income of the consumer. The bundles are as follows:
(0,4) (1,3) (2,2) (3,1) (4,0)
More Questions From Class 12 Micro Economics - Chapter Theory of Consumer Behaviour
- Q:-
A consumer wants to consume two goods. The prices of the two goods are Rs 4
and Rs 5 respectively. The consumer’s income is Rs 20.
(i) Write down the equation of the budget line.
(ii) How much of good 1 can the consumer consume if she spends her entire
income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on
that good?
(iv) What is the slope of the budget line?
Questions 5, 6 and 7 are related to question 4. - Q:-
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
- Q:-
What is budget line?
- Q:-
Suppose there are 20 consumers for a good and they have identical demand functions:
d(p)=10–3pd(p)=10–3p for any price less than or equal to 103103 and d1(p)=0d1(p)=0 at any price greater than 103.
- Q:-
Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 53?
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- Q:-
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- Q:-
Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?
- Q:-
Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2
if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8
respectively. How much is the consumer’s income?
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Quantity
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Marginal
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6
2
2
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