Download App

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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour2 Marks
Question
State the law of equi-marginal utility.
✓

Answer

Law of equi-marginal utility states that a consumer gets maximum satisfaction when the ratio of the marginal utilities of two goods and their prices are equal, i.e.,

$\frac{\text{MU}_\text{X}}{\text{P}_\text{X}}=\frac{\text{MU}_\text{Y}}{\text{P}_\text{Y}}.$

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 "2 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

In India a majority of population is lying below poverty line due to inequality of 'Income and Wealth'. How can budget be helpful in solving this problem?
→
Define an indifference curve. Why is it convex to the origin?

OR

Explain why an indifference curve is convex to the origin?

→
Why a monopolist is considered as price maker?
→
What are the important features of a capitalist economy?
→
Study the statements given below and state whether demand will be elastic or inelastic citing reasons for your answer:
  1. Demand for tea by a habitual coffee.
  2. A consumer postpones the purchase of a refrigerator till the off-season sale.
→
Explain the central problem of ‘choice of technique’.
→
If the Real GDP is ₹ 400 and Nominal GDP is ₹ 450, calculate the price Index (base = 100).
→
Giving reasons, classify the following into direct and indirect tax:
  1. Wealth tax.
  2. Value added tax.
  3. Entertainment tax.
  4. Income tax.
→
What is opportunity cost? Explain with the help of a numerical example.
→
Suppose there are two consumers in the market for a good and their demand functions are as fallows:
d1 (p) = 20 - p for any price less than or equal to 20.
d1 (p) = 0 at any price greater than 20.
d1 (p) = 30 - 2p for any price less than or equal to 15.
d1 (p) = 0 at any price greater than 15.
Find out the market demand function.
→