Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Any consumer will want to get a combination of goods that gives her maximum satisfaction. This best combination of goods depends on which of the following?

Options:

Consumer preferences

Affordability of consumer

Both of the above

None of the above

Correct Answer:

Both of the above

Explanation:

One of the most important assumption of economics is "Rationality", according to which any consumer will want to get a combination of goods that gives the consumer maximum satisfaction. What will be this best combination? This depends on the likes of the consumer, that is, his preferences towards the commodity and what the consumer can afford to buy.