Consumer Behaviour

What is the slope of PPC

• Downward concave

• Downward convex

• Upward concave

• Upward concave

The slope of indifference curve is equal to

• price ratio

• marginal opportunity cost

• marginal rate of substitution

• all of these

Budget Set is represented by

• (p1x1) + (p2x2) = M

• (p1x1) + (p2x2) ≤ M

• (p1x1) + (p2x2) >M

The slope of Budget line is given by

• relative price

• absolute price

• Px/Py

• both option 1 & 3

Marginal Utility of a consumer ___________________ along an indifference curve

Each point on the IC curve shows

• different combination of commodities & different level of utility

• same combination and same level of utility

• different combination and same level of utility

Slope of Budget line and IC curve

• equal on all points

• not equal at any point

• equal only at point of tangency