Match List-I with List-II
|
List-I |
List-II |
|
(A) Marginal rate of substitution |
(I) Slope of Budget line |
|
(B) $MU_x/MU_y=P_x/P_y$ |
(II) more of at least one good and no less of the other good |
|
(C) $-(P_x/P_y)$ |
(III) Law of equi marginal utility |
|
(D) Monotonic Preferences. |
(IV) Slope of indifference curve |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)
|
List-I |
List-II |
|
(A) Marginal rate of substitution |
(IV) Slope of indifference curve |
|
(B) $MU_x/MU_y=P_x/P_y$ |
(III) Law of equi marginal utility |
|
(C) $-(P_x/P_y)$ |
(I) Slope of Budget line |
|
(D) Monotonic Preferences. |
(II) more of at least one good and no less of the other good |
(A) Marginal Rate of Substitution → (IV) Slope of Indifference Curve. The MRS represents the rate at which a consumer is willing to substitute one good for another while keeping satisfaction constant — it is the slope of the indifference curve.
(B) MUx/MUy = Px/Py → (III) Law of Equi-Marginal Utility. This is the consumer equilibrium condition, derived from the Law of Equi-Marginal Utility, which states that utility is maximized when the ratio of marginal utilities equals the ratio of prices.
(C) −(Px/Py) → (I) Slope of Budget Line. The negative price ratio (−Px/Py) gives the slope of the budget line, showing the rate at which the consumer can trade one good for another in the market.
(D) Monotonic Preferences → (II) More of at least one good and no less of the other good. Monotonic preferences mean a consumer always prefers more of at least one good and no less of the other, indicating non-satiation.