Explain why an Indifference curve has a negative slope (i.e. IC slope downwards to the right).

5

(a)

"Law of diminishing marginal utility will operate even if consumption takes place in intervals." Defend or refute.

5

(a)

Define market rate of exchange.

5

(a)

Explain consumer's equilibrium in case of a single commodity with the help of a utility schedule.

5

(a)

Using indifference curve approach, explain the conditions of consumer's equilibrium.

5

(a)

Show diagrammatically the conditions for consumer's equilibrium, in Hicksian analysis of demand

5

(a)

State condition of consumer equilibrium in case of a single commodity.

5

(a)

How many units of a commodity should a consumer buy to get its maximum utility? Explain with the help of a numerical example

5

(a)

Differentiate between Cardinal and Ordinal Utility.

5

(a)

State and explain the condition of consumer's equilibrium in case of two commodities through utility approach.

5

(a)