Theory of demand & supply – Test 3

If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be: ____

In economics, ___ of a good is its expected capacity to satisfy a human want.

In economic theory, utility can be measured by-
1. cardinal approach
2. ordinal approach

Which of the following approach assumes the utility can be measured in terms of number like 1, 2, 3, 4 & 5?

___ ,an ___ Economist, severely criticized the concept of cardinal utility.

Who introduced the approach of ordinal utility?

According to the ___, a consumer has given a scale of preference for different combinations of two goods. It is assumed that consumer can rank the goods like 1st, 2nd, 3rd, 4th.

____ is the summation of utilities derived from all the ‘n’ units.

If total utility is divided by number of units it is known as-

The additional satisfaction a consumer gains from consuming one or more unit of a goods or service is-

At the time of consumption of ___ Total utility, Average utility, Marginal utility are same.

If marginal utility is zero-

When economists speak of the utility of a certain good, they are referring to ___

____ states that as the stock of a commodity increases with the consumer, its marginal utility to the consumer decrease.

The law of diminishing marginal utility states that as the stock of a commodity increases with the consumer, its ____ to the consumer decreases.

The law of diminishing marginal utility states that as the stock of a commodity ___ with the consumer, its marginal utility to the consumer ___

____ says that ” the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has”.

Which of the following is exception to the law of diminishing marginal utility?

The concept of marginal utility plays a central role in-

Which of the following assumption is applicable for law of diminishing marginal utility?

As per law of equi-marginal utility, the consumer’s equilibrium will change if there is a change in-
1. His total expenditure
2. Marginal utility schedule of any good
3. Price of any good

The law of equi-marginal utility was stated by-

_____ is the situation when a consumer secures maximum satisfaction out of his expenditure.

Consumer attains the equilibrium position at a point when he maximizes his total utility given his income and price of commodities he consumes.

AS per___, a consumer with a single commodity attains equilibrium at a point where: MU=price