What are the important characteristics of an indifference curve. Suppose a consumer’s disposable income is Rs. 5,000/- per week and she has a choice of spending the income on concerts and meals. Assume meal is available for Rs.250/- each and concerts are available for Rs.500/- each. Prepare a table of possible combinations of meals and concerts that could be bought with the income. What is your observation about the values in the table?
Answers
Both statements are correct where as
A data store in a place where data collections like a database, a file system, or a directory. They can store in the database system in the following ways
- Row-oriented storage: The Row-oriented data stores are best suited for online transaction system.
- Column-oriented storage: These are efficient in performing operations applicable to the entire dataset and hence enables aggregation over many rows and columns.
Explanation:
Indifference curve is the locus of the set of all points, representing different possible combinations of two goods, which offer the same level of satisfaction to the consumer.
An indifference curve is the locus of all the points which represent different possibilities of two goods. Key features of the IC :
1. It is downward sloping
2. It does not intersect each other
3. IC is convex to the point of origin
4. Higher IC points mean a higher level of satisfaction.
As apparent from the question, the rate at which consumer substitutes Good Y for Good X is constant at 1/2 i.e. 0.5. Hence the slope of the budget line is constant