Consumer surplus is
Potential price- Actual price
MVn - TVn- TVn-1
Demand = Supply
Potential price+Actual price
As the consumer has more units of a commodity, his total utility from the commodity is
Increases less than in proportion, reaches a maximum and then falls.
Increases less than in proportion and then falls
Increases more than in proportion and then reaches a maximum
Falls becomes zero and then negative
utility is _________ concept.
Social concept
Subjective/ Psychological concept
Political concept
Scientific concept
An indifference curves is _____ to the origin.
Convex
Concave
Constant
Parallel
Single commodity consumption mode is
Production possibility curve
Law of equi-marginal utility
Law of supply
Law of diminishing marginal utility
When tax is raised, a consumer surplus:
Falls
Rises
Remain unchanged
Becomes zero
An___________ shows different combinations of two commodities, which give the consumer an equal satisfaction.
Indifference curve
Marginal utility
Isoquant
Indifference curves slope downwards to the
Right
Left
Origin
When MRS is constant, X and Y are
Not related
Perfect substitutes
Perfect complements
Inferior goods.
______ means using up of goods and services.
Consumption
Production
Distribution
Investment
