The two factors that determine consumer behavior are ____________.

supply and demand

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the budget line and indifference curve

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the tastes of the consumer

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both (b) and (c)

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Solution

The correct option is C both (b) and (c)
It is very difficult to determine consumer behavior, but knowing the two options in the question would help understand the behavior of the consumer in a better way.

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Similar questions

Q. 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

Q. Given the budget line a consumer will try to opt for _______ level of indifference curve.

a) A consumer, Mr Aman is in state of equilibrium consuming two goods X and Y, with given prices Px and Py . What will happen if $\frac{M U x}{P x} > \frac{M U y}{P y}$ ?

b) Identify which of the following is not true for the Indifference Curves theory. Give valid reasons for choice of your answer:

a. Lower indifference curve represents lower level of satisfaction.
b. Two indifference curves can intersect each other.
c. Indifference curve must be convex to origin at the point of tangency with the budget line at the consumer’s equilibrium.
d. Indifference curves are drawn under the ordinal approach to consumer equilibrium.

A consumer has total money income of Rs 500 to be spent on two goods X and Y with prices of Rs 50 and Rs 10 per unit respectively. On the basis of the given information, answer the following questions:
a. Give the equation of the budget line for the consumer.
b. What is the value of slope of the budget line?
c. How many units can the consumer buy if he is to spend all his money income on good X?
d. How does the budget line change if there is a 50% fall in price of good Y?

Q. An indifference curve represent combination of two goods that a consumer _______,

A consumer consumes only two goods. For the consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods? Explain.

A consumer consumes only two goods. Why is the consumer in equilibrium when he buys only that combination of the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.

Explain when a consumer, consuming only two commodities X and Y, attains equilibrium under the utility approach.

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The two factors that determine consumer behavior are ____________.

The correct option is C both (b) and (c)It is very difficult to determine consumer behavior, but knowing the two options in the question would help understand the behavior of the consumer in a better way.

The correct option is C both (b) and (c)
It is very difficult to determine consumer behavior, but knowing the two options in the question would help understand the behavior of the consumer in a better way.