When the price of one commodity in a combination of commodities falls in such a way that the consumer's real income changes but he remains on the same level of satisfaction as before, it is known as
| A. | Income effect |
| B. | Variation effect |
| C. | Price effect |
| D. | Compensating variation in income |
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Option: D Explanation : Click on Discuss to view users comments. |
Total utility of a commodity can be found by
| A. | Multiplying price by number of units |
| B. | Adding up the marginal utility of all units |
| C. | Multiplying the number of units by its marginal utility |
| D. | None of these |
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Option: B Explanation : Click on Discuss to view users comments. |
The slope of the Iso-cost line is determined by
| A. | Prices of the two factors |
| B. | Degree of substitutability of two factors |
| C. | Productivity of the two factors |
| D. | None of these |
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Option: A Explanation : Click on Discuss to view users comments. |
