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:

The correct answer is option 1: Both Assertion (A) and Reason (R ) are true and Reason(R) is the correct explanation of Assertion (A)


Assertion (A):
True. Indifference curves do indeed slope downward from left to right. This means that as a consumer increases their consumption of one good, they must decrease their consumption of another good in order to maintain the same level of satisfaction.

Reason (R): The reason provided is correct. An indifference curve represents all the combinations of goods that give a consumer the same level of satisfaction. If the consumer wants to increase their consumption of one good, they must reduce their consumption of the other good to stay on the same indifference curve. This is because the marginal utility of each good decreases as the consumer consumes more of it.

Therefore, both the assertion and the reason are true, and the reason accurately explains why indifference curves slope downward.