Question

Are the following statement true or false? (a) If consumer likes Bundle a at least as much as Bundle b, then consumer is weakly prefer a to b. (b) An indifference curve is the set of all bundles of goods that a consumer views as being equally desirable. (c) The demand curve is always sloping either downward or upward. (d) Consumer well-being from a good is the benefits a consumer gets from consuming that good in excess cost. (e) Monopoly is a group of suppliers of goods and services.

Answer 1

A) True, Because when consumer likes bundle A at least as much as bundle B, then consumer is weakly prefer A to B.

B) True, Because an indifference curve is set of all the bundles of goods that a consumer views as being equally desirable.

C) True, Because in case of normal goods, demand curve slopes downwards and in case of giffen goods, demand curve slopes upwards.

D) False, Because a consumer always wants to maximize its utility at minimum level of cost.

E) False, Because, monopoly is a market of single supplier of goods.

answered by: anonymous