Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below:
Assertion (A): Indifference curve slopes downward from left to right.
Reason (R ): If the consumer wants to have more unit of one good, he has to reduce the number of units of another commodity so that total satisfaction remains the same .

Options:

Both Assertion (A) and Reason (R ) are true and Reason(R) is the correct explanation of Assertion (A) 

 Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A)

 Assertion (A) is true but Reason (R ) is false

 Assertion (A) is true but Reason (R ) is false

Correct Answer:

Both Assertion (A) and Reason (R ) are true and Reason(R) is the correct explanation of Assertion (A) 

Explanation:

An indifference curve slopes downwards from left to right, which means that in order to have more of bananas, the consumer has to forego some mangoes. If the consumer does not forego some mangoes with an increase in number of bananas, it will mean consumer having more of bananas with same number of mangoes, taking her to a higher indifference curve. Thus, as long as the consumer is on the same indifference curve, an increase in bananas must be compensated by a fall in the quantity of mangoes.