Start learning →

Bihar Board Class 12 (Arts) Theory of Consumer Behaviour & Demand — practice questions — page 5

Explore 192 free Theory of Consumer Behaviour & Demand questions in Bihar Board Class 12 (Arts) Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Theory of Consumer Behaviour & Demand with Quill →

Theory of Consumer Behaviour & Demand questions and exercises with answers

Showing questions 121–150 of 192.

Why can two indifference curves never intersect?Read the answer and worked solution →The set of all bundles a consumer can buy with her income at market prices is called what?Read the answer and worked solution →If income is M and prices are p1 and p2, the budget constraint for bundle (x1, x2) is which inequality?Read the answer and worked solution →A consumer has Rs 20 and both goods cost Rs 5 each. Which bundle can she not afford?Read the answer and worked solution →With Rs 20 and both goods at Rs 5 in whole units, how many bundles cost exactly Rs 20?Read the answer and worked solution →The line showing all bundles that cost exactly the consumer's income is called what?Read the answer and worked solution →What is the slope of the budget line in terms of the prices p1 and p2?Read the answer and worked solution →If a banana costs Rs 6 and a mango Rs 3, how many mangoes must be given up for one more banana?Read the answer and worked solution →When income rises and prices stay unchanged, how does the budget line move?Read the answer and worked solution →When income falls with prices unchanged, what happens to the slope of the budget line?Read the answer and worked solution →The consumer's optimum bundle is located where the budget line does what to an indifference curve?Read the answer and worked solution →At the consumer's optimum, which two quantities are equal?Read the answer and worked solution →A rational consumer chooses the bundle that does what?Read the answer and worked solution →Why is a bundle below the budget line never the optimum?Read the answer and worked solution →Bundles on indifference curves above the optimum curve are what?Read the answer and worked solution →The relation between a consumer's optimal quantity of a good and its price is called what?Read the answer and worked solution →On a standard demand curve, which variable is measured along the vertical axis?Read the answer and worked solution →When a good's price falls, the consumer reaches what?Read the answer and worked solution →When bananas become cheaper, buying more of them in place of mangoes is called which effect?Read the answer and worked solution →When a price falls and real purchasing power rises, the resulting extra demand is which effect?Read the answer and worked solution →In the linear demand d(p) = a - bp, what does the slope -b show?Read the answer and worked solution →For the demand curve d(p) = 100 - 5p, what quantity is demanded at a price of zero?Read the answer and worked solution →For a normal good, demand moves in which direction relative to consumer income?Read the answer and worked solution →A good whose demand falls when the consumer's income rises is called what?Read the answer and worked solution →Which of these is given as an example of an inferior good?Read the answer and worked solution →A good for which income effect outweighs substitution effect, so demand rises with price, is called what?Read the answer and worked solution →Goods that are consumed together, such as pen and ink, are called what?Read the answer and worked solution →The demand for a good usually moves in which direction relative to the price of its substitutes?Read the answer and worked solution →A rise in consumer income shifts the demand curve of a normal good in which direction?Read the answer and worked solution →An increase in the price of a complementary good shifts the demand curve for this good where?Read the answer and worked solution →

Worked practice questions

Why can two indifference curves never intersect?

  1. They would give conflicting rankings
  2. They are parallel by definition
  3. Prices would fall to zero
  4. Income would have to double
Show answer and solution

Correct answer: A. They would give conflicting rankings

At an intersection one bundle would equal two others of unequal worth, which is an absurd result.

Open this question →

The set of all bundles a consumer can buy with her income at market prices is called what?

  1. Indifference map
  2. Budget set
  3. Demand function
  4. Utility schedule
Show answer and solution

Correct answer: B. Budget set

The budget set contains every affordable bundle given income and prices.

Open this question →

If income is M and prices are p1 and p2, the budget constraint for bundle (x1, x2) is which inequality?

  1. p1x1 + p2x2 > M
  2. p1x1 - p2x2 = M
  3. p1x1 + p2x2 <= M
  4. p1x1 x p2x2 <= M
Show answer and solution

Correct answer: C. p1x1 + p2x2 <= M

Total spending on both goods cannot exceed income, so p1x1 + p2x2 must be at most M.

Open this question →

How to practise

  1. Choose a Theory of Consumer Behaviour & Demand question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Theory of Consumer Behaviour & Demand practice for Bihar Board Class 12 (Arts). Read explanations as you go. No signup form needed to start.

Practise Theory of Consumer Behaviour & Demand →

More Economics topics

Determination of Income and EmploymentNational Income AccountingOpen Economy MacroeconomicsGovernment Budget and the EconomyMoney and BankingMacroeconomics: Income, Budget & BankingCurrent Challenges Facing Indian EconomyIndian Economy & Economic Development