Theory Of Consumer Behaviour is a chapter that deals with various concepts – utility, marginal utility, total utility, budget, monotonic preferences, indifference curve, marginal rate of substitution, diminishing rate of substitution, indifference map, properties of indifference curve, conditions for consumer’s optimum, demand, demand function, demand schedule, demand curve, linear demand, law of demand, exceptions to the law of demand, normal goods, inferior goods, giffen goods, substitute goods, complementary goods, price elasticity of demand, degrees of price elasticity of demand, factors influencing the elasticity of demand.
Frequently asked Questions on CBSE Class 12 Microeconomics Notes Chapter 2: Theory of Consumer Behaviour
What is the ‘Demand curve’?
The graphic representation of the relationship between product price and the quantity of the product demanded is known as the ‘Demand curve’.
What are ‘giffen goods’?
A Giffen good is a low income, non-luxury product for which demand increases as the price increases and vice versa.
Which are the factors that influence ‘Elasticity of demand’?
1. Availability of substitutes 2. If the good is a luxury or a necessity 3. The proportion of income spent on the good 4. Time that has elapsed since the time the price changed
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