Indifference Curve Analysis
Economics ⇒ Consumer and Producer Behaviour
Indifference Curve Analysis starts at 11 and continues till grade 12.
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See sample questions for grade 11
A consumer has a fixed income of ₹100. The price of good X is ₹10 and the price of good Y is ₹20. What is the maximum quantity of good X the consumer can buy if they buy only X?
A consumer is choosing between apples and bananas. If the marginal rate of substitution of apples for bananas is 2, what does this mean?
Explain the concept of a budget line in relation to indifference curves.
Explain the concept of the marginal rate of substitution (MRS) in the context of indifference curves.
Explain the difference between cardinal and ordinal utility.
Explain the meaning of the term 'indifference map'.
Explain why indifference curves are downward sloping from left to right.
If a consumer's indifference curves are concave to the origin, what does this imply about their preferences?
If a consumer's indifference curves are straight lines, what does this indicate about their preferences?
If a consumer's preferences are inconsistent, which assumption of indifference curve analysis is violated?
State one limitation of indifference curve analysis.
State one reason why indifference curves cannot be thick.
State the law of diminishing marginal rate of substitution.
What is an indifference curve?
Why are indifference curves convex to the origin?
