Match the following:
A. Various combinations of two commodities that a consumer can purchase 1. Indifference map
B. Various combinations of two commodities that give consumer equal satisfaction 2. Indifference curve
C. A set of indifference curves 3. Budget line
D. Point of agency of a budget line and an indifference curve 4. Consumer's equilibrium

A-1, B-2, C-4, D-3

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A-4, B-3, C-2, D-1

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A-2, B-3, C-4, D-1

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A-3, B-2, C-1, D-4

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Solution

The correct option is D A-3, B-2, C-1, D-4
a) Various combinations of two commodities that a consumer can purchase is depicted by the budget line.
b) Various combinations of two commodities that give consumer equal satisfaction is depicted by an indifference curve.c) A set of indifference curves is known as indifference map.d) Point of agency of a budget line and an indifference curve is known as consumer's equilibrium point.

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a. Lower indifference curve represents lower level of satisfaction.

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A consumer has total money income of Rs 250 to be spent on two goods X and Y with prices of Rs 25 and Rs 10 per unit respectively. On the basis of the information given, answer the following questions:

a. Give the equation of the budget line for the consumer.

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A.	Various combinations of two commodities that a consumer can purchase	1.	Indifference map
B.	Various combinations of two commodities that give consumer equal satisfaction	2.	Indifference curve
C.	A set of indifference curves	3.	Budget line
D.	Point of agency of a budget line and an indifference curve	4.	Consumer's equilibrium