What do
you mean by budget line? What are the reasons of change in budget line?
Explain
the relationship between total utility and marginal utility with the help of
schedule.
Or
What changes will take place in total utility when –
Marginal
utility curve remains above X–axis
Marginal
utility curve touches X–axis
Marginal
utility curve lies below X–axis.
State
three features of indifference curve.
Why
does two indifference curves not intersect each other?
Under
what situations there will be parallel shift in budget line?
Explain
the effect of a rise in the prices of ‘related goods’ on the demand for a good
X.
Why
does demand of a normal good increases due to increase in consumer’s income?
Explain
following factors effecting Price Elasticity of Demand
Nature of commodity
Availability of substitutes
Postponement of the use
Distinguish
between expansion of demand and increase in demand with the help of diagram.
Measure
Price Elasticity of Demand on the following points of a straight line demand
curve :
Centre point of the demand curve.
Demand curve intercepting y-axis
Demand curve intercepting x-axis.