Question

draw a digram showing optimum combination of consumer. explain answer
(class 12 micro economics)​

Answer 1

Answer:

NCERT Solutions for Class 12 Micro Economics Consumer Equilibrium

September 29, 2019 by Bhagya

NCERT  Solutions for Class 12 Micro Economics Chapter-2 Consumer Equilibrium

NCERT TEXTBOOK QUESTIONS SOLVED

Question 1. What do you mean by the budget set of a consumer?

Or

Define Budget Set. [CBSE 2011, 13] [1 Mark]

Answer:  Budget set is the collection of all bundles of goods that a consumer can buy with his income at the prevailing market prices.

Question 2. What is Budget Line? [CBSE 2011, 13, 11C, A1 10][1 Mark]

Answer: Budget line is a graphical representation which shows all the possible combinations of the two goods that a consumer can buy with the given income and prices of commodities. It is also called consumption possibility line.

Question 3. Explain why budget line is downward sloping?

Or

Why is budget line negatively sloped? [CBSE 2011 C][l Mark]

Answer: ‘