Download App

Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Discuss briefly, using a hypothetical schedule the relation between marginal utility and total utility.

OR

Explain the relationship between total utility and marginal utility with the help of a schedule and diagram.

OR

How does total utility change with the change in marginal utility of a commodity? Explain.

Show that total utility is maximum and constant when marginal utility is zero.

✓

Answer

The relationship between MU and TU is as follows:

  1. When MU is positive, TU rises at diminishing rate.
  2. When MU is zero, TU is maximum and constant.
  3. When MU is negative, TU falls.

The following utility schedule and diagram illustrates the relationship:

On the basis of the schedule and diagram we infer:

  1. When MU is positive, TU will rise
  2. When MU is zero, TU is maximum and constant. (at unit 5).
  3. When MU is negative, TU falls (unit 6 onwards).

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Theory of consumer behaviour→Theory of consumer behaviour — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

At the market price of ₹ 10, a firm supplies 4 units of output. The market price increases to ₹ 30. The price elasticity of the firm's supply is 1.25. What quantity will the firm supply at the new price?
→
What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?
→
The price elasticity of demand for a good is – 0.4. If its price increases by 5 percent, by what percentage will its demand fall? Calculate.
→
There are no barriers in the way of firms leaving or joining industry in a perfectly competitive market. Explain the significance of this feature.
→
What is the behaviour of TFC, TVC and TC as output is increased?
→
Define cost. State the behaviour of (a) Total Fixed Cost and (b) Total Variable Cost as output is increased.
→
Explain the relationship between marginal propensity to consume and investment multiplier.
→
Economists say in consistent things, as price falls, demand rises, but as demand rises, price rises. Defend or refute.
→
Demand curve facing a monopoly firm is a constraint for the monopolist." Comment.
→
An economy is in equilibrium. Calculate national Income from the following:
Autonomous consumption = 100
Marginal propensity to save = 0.2.
Investment expenditure = 200.
→