Bihar Board Class 12 (Commerce) Theory of Consumer Behaviour — practice questions
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Practice Bihar Board Class 12 (Commerce) Theory of Consumer Behaviour in the app →In economics, the want-satisfying capacity of a commodity is called what?Why is utility described as subjective?Cardinal utility analysis assumes that utility can be expressed how?Marginal utility is the change in total utility from consuming how much more of a good?If 4 bananas give 28 units of total utility and 5 bananas give 30, what is the marginal utility of the 5th banWhich formula correctly gives the marginal utility of the nth unit?Total utility from n units equals which of the following?The law of diminishing marginal utility says that marginal utility from each extra unit does what as consumptiWhen total utility stops changing as consumption rises, marginal utility is what?The quantity a consumer is willing to buy and able to afford at given prices is called what?A demand curve shows quantities a consumer will buy at different prices of the same good, holding what constanThe negative relationship between a good's price and quantity demanded is known as what?Which idea in cardinal analysis explains why demand curves slope downward?Ordinal utility analysis assumes that a consumer can do what with consumption bundles?A curve joining all bundles that give a consumer equal satisfaction is called what?What is the rate of giving up one good for another at constant utility?Going from 15 mangoes and 1 banana to 12 mangoes and 2 bananas, MRS is what?The law of diminishing marginal rate of substitution says MRS does what as one good increases?Diminishing MRS gives the common indifference curve which shape?Five rupee paper bills and five rupee coins are treated by a consumer as what kind of goods?What does the indifference curve of two perfect substitutes look like?Preferring a bundle with more of one good and no less of the other is called what?A family of indifference curves showing a consumer's preferences is called what?Why does an indifference curve slope downward?Bundles on a higher indifference curve give the consumer what, compared with a lower curve?Why can two indifference curves never intersect?The set of all bundles a consumer can buy with her income at market prices is called what?If income is M and prices are p1 and p2, the budget constraint for bundle (x1, x2) is which inequality?A consumer has Rs 20 and both goods cost Rs 5 each. Which bundle can she not afford?With Rs 20 and both goods at Rs 5 in whole units, how many bundles cost exactly Rs 20?The line showing all bundles that cost exactly the consumer's income is called what?What is the slope of the budget line in terms of the prices p1 and p2?If a banana costs Rs 6 and a mango Rs 3, how many mangoes must be given up for one more banana?When income rises and prices stay unchanged, how does the budget line move?When income falls with prices unchanged, what happens to the slope of the budget line?The consumer's optimum bundle is located where the budget line does what to an indifference curve?At the consumer's optimum, which two quantities are equal?A rational consumer chooses the bundle that does what?Why is a bundle below the budget line never the optimum?Bundles on indifference curves above the optimum curve are what?The relation between a consumer's optimal quantity of a good and its price is called what?On a standard demand curve, which variable is measured along the vertical axis?When a good's price falls, the consumer reaches what?When bananas become cheaper, buying more of them in place of mangoes is called which effect?When a price falls and real purchasing power rises, the resulting extra demand is which effect?In the linear demand d(p) = a - bp, what does the slope -b show?For the demand curve d(p) = 100 - 5p, what quantity is demanded at a price of zero?For a normal good, demand moves in which direction relative to consumer income?A good whose demand falls when the consumer's income rises is called what?Which of these is given as an example of an inferior good?A good for which income effect outweighs substitution effect, so demand rises with price, is called what?Goods that are consumed together, such as pen and ink, are called what?The demand for a good usually moves in which direction relative to the price of its substitutes?A rise in consumer income shifts the demand curve of a normal good in which direction?An increase in the price of a complementary good shifts the demand curve for this good where?An increase in the price of a substitute shifts a good's demand curve in which direction?Why is the demand curve for ice-cream likely to shift rightward in summer?A health scare about cold-drinks is likely to do what to their demand curve?A change in the price of the good itself causes what on its demand curve?The market demand at a price is obtained how?The method of adding individual demand curves to get the market demand curve is called what?Consumers have demands d1 = 10 - p and d2 = 15 - p. What is market demand at a price of 4?Price elasticity of demand equals which ratio?If percentage change in quantity is less than percentage change in price, demand is called what?If a 10 percent price rise cuts quantity by 25 percent, demand at that price is what?Demand for essential goods is often found to be what?At the midpoint of a linear demand curve, what is the price elasticity of demand?Where a linear demand curve meets the horizontal quantity axis, elasticity is what?Elasticity on the part of a linear demand curve to the left of the midpoint is what?A vertical demand curve is described as what?Which demand curve has elasticity of one at every point?Which kind of good typically has price inelastic demand?Why is demand for a particular variety of pulses likely more elastic than for food overall?Expenditure on a good equals which product?A price rises and quantity falls by a larger percentage. What happens to expenditure on the good?For a price-inelastic good, a price rise causes expenditure to do what?