The ‘likes’ of a consumer, which help decide the best combination of goods for her, are also called:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → preferences
What a consumer likes decides which combination of goods is best for her. These likes are called her preferences.
NCERT (2026-27): “… Most naturally, any consumer will want to get a combination of goods that gives her maximum satisfaction. … This depends on the likes of the consumer and what the consumer can afford to buy. The ‘likes’ of the consumer are also called ‘preferences’. And what the consumer can afford to buy, depends on prices of the goods and the income of the consumer. …” |