Chapter 2 of Sandeep Garg's Microeconomics Solutions for Class 11 Expert Economics teachers demonstrate Consumer's Equilibrium in the latest edition of Sandeep Garg Microeconomics Class 11 textbook solutions. Sandeep Garg Economics Class 11 Solutions are provided by MNS EdTech to provide students with a detailed understanding of the subject. These experiences provide students with a priceless advantage when it comes to completing homework or preparing for exams. There are various principles in Economics; however, we at MNS EdTech provide students with a solution from Consumer's Equilibrium, which will help them perform well on their board exams.
Sandeep Garg Solutions Class 11 – Chapter 2 – Part A – Microeconomics
Question 1
Define Total Utility.
Ans: Total Utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity.
Question 2
Explain how the Total Utility and Marginal Utility are calculated, by using graphical representation.
| Ice Creams consumed | Marginal Utility (MU) | Total Utility (TU) |
| 1 | 20 | 20 |
| 2 | 16 | 36 |
| 3 | 10 | 46 |
| 4 | 4 | 50 |
| 5 | 0 | 50 |
| 6 | -6 | 44 |
Solution:
Question 3
Explain the Law of Diminishing Utility.
Ans: The Law of Diminishing Utility (LDMU) states that as we consume more and more units of a commodity, the utility derived from each successive unit goes on decreasing.
Question 4
Mention 4 Assumptions of Law of Diminishing Utility.
Ans: The 4 assumptions of Law of Diminishing Utility are:
- Rational Consumer
- Perfect Knowledge
- Fixed Income and prices
- Independent utilities
Question 5
What is Indifference Curve?
Ans: Indifference Curve refers to the graphical representation of various alternatives combinations of bundles of 2 goods among which the consumer is indifferent.
Question 6
Expand MRS.
Ans: MRS stands for Marginal Rate of Substitution.
Question 7
Give 3 Assumptions of Indifference Curve.
Ans: The three assumptions of indifference curve are :
- Non-satiety
- 2 commodities
- Ordinal Utility
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