EASY
Earn 100

Under ceteris paribus assumptions, price and quantity demanded of a commodity move in directions.

50% studentsanswered this correctly

Important Questions on Theory of Consumer Behaviour

MEDIUM
Explain the law of demand and state the reasons behind it.
EASY
What do you mean by complements? Give examples of two goods that are complements of each other.
EASY
Law of Demand states that ceteris paribus, _____ falls with increase in the price.
HARD

Suppose there are 20 consumers for a good and they have identical demand functions:
dp=10-3p for any price less than or equal to 103 and d1(p)=0 at any price greater than 103.
What is the market demand function?

MEDIUM
Consider a market where there are just two consumers and suppose their demands for the good are given as follows: Calculate the market demand for the good.
MEDIUM
If the price of a particular commodity increase, the consumer purchase more substitute goods than the risen products, and this is known as _____. (Substitution effect / Income effect)
HARD
Consider a market where there are just two consumers and suppose their demands for the goods are given as follows:
p d1 d2
1 9 24
2 8 20
3 7 18
4 6 16
5 5 14
6 4 12
Calculate the market demand for the good.
 
EASY
Amongst the combination is given below, which combination of goods are known as Substitute Goods?
EASY
What do you mean by an 'inferior good'? Give some examples.
EASY
What do you mean by substitutes? Give examples of two goods that are substitutes for each other.
MEDIUM
Consider the demand curve D(p) = 10 – 3p. What is the elasticity at price 5/3?
EASY
There is an _____ relationship between price and quantity demanded.
HARD
What kind of relationship exists between income and demand of inferior good?
EASY
_____ good is an exception to the law of demand because the consumption of certain inferior goods falls with an increase in income and vice versa. (Giffen / Normal)
EASY
Demand for a good is a function of _____ (organisation/price) which is the most important factor in consumer behavior.
MEDIUM
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
HARD

Suppose there are two consumers in the market for a good and their demand functions are as follows:
d1(p)= 20-p for any price less than or equal to 20, d1(p)=0 at any price greater than 20.
d2(p)= 20-p for any price less than or equal to 20, d2(p)=0 at any price greater than 15.
Find out the market demand function.