Utility and Total Utility

Q.

Is the Indifference curve concave to the origin?

Q. Higher level of indifference curve shows lower level of satisfaction.

1. True
2. False

Q. As a consumer, would you equate price of a commodity with total utility or marginal utility? Give reason in support of your answer.

Q. An indifference curve slopes __________.

1. upwards from left to right
2. upwards from right to left
3. downwards from left to right
4. downwards from right to left

Q. A higher indifference curve denotes a _____________.

1. higher level of satisfaction
2. lower level of satisfaction
3. none of the above
4. same level of satisfaction

Q. Distinguish between :
Utility and Satisfaction.

Q. Slope of indifference curve.

1. Upward sloping
2. Vertical to y axis
3. Horizontal to x axis
4. Downward sloping

Q. Indifference curves can intersect each other.

1. True
2. False

Q. On which of the following assumption the indifference curve approach is based?

1. Consumer can rank different combinations of two goods in order of preference i.e. 1st, 2nd, 3rd
2. Consumer is rational
3. Consumer behaviour is consistent
4. All of above

Q. A consumer consumes 2 goods X and Y and both are priced at 3 per unit. If the consumer chooses a combination of these 2 goods with MRS=3 is the consumer in equilibrium. Give reason. What will a rational consumer do in this situation? Explain.

Q. Answer the following question in $15$ sentences.
Write the importance of law of diminishing marginal utility.

Q. Starting from the initial situation of consumer's equilibrium, suppose that the marginal utility of a rupee increase. Will it increase or decrease the quantity demanded of a product?