Pooja kurmi Asked a Question
September 13, 2020 9:09 ampts 50 pts
January 2017 7 Match the items of List I with items of List II and indicate the code of their correct matching. List List I 1. Extension and A. Non-price quantity relationships of demand contraction of demand 2. Ordinal utility approach B. Income effect of a price rise greater than its substitution effect C. Transitivity and consistency of 3. Increase and decrease in choices demand D. Price quantity relationships of 4. Giffen goods demand Codes A B C D (a) 4 (b) 2 (c)3 (d) 1 2 2 3 1 4
  • 2 Answer(s)
  • 0 Likes
  • 5 Comments
  • Shares
  • Rucha rajesh shingvekar Best Answer
    Assumptions of Ordinal Utility Approach   Rationality: It is assumed that the consumer is rational who aims at maximizing his level of satisfaction for given income and prices of...
    Show more
    Likes(0) Reply(0)
  • Rucha rajesh shingvekar thankyou
    see this explanations
    • cropped3050550771784858584.jpg
    Likes(0) Reply(0)
  • Rucha rajesh shingvekar
    Option (c) is correct
    Likes(0) Reply(0)
  • Rucha rajesh shingvekar
    (a) Increase in demand refers to a rise in demand due to changes in other factors, price remaining constant. Decrease in demand refers to fall in demand due to changes in other fac...
    Show more
    Likes(0) Reply(0)
  • Rucha rajesh shingvekar
    the price reduction increases consumer purchasing power, known as the income effect (an outward shift of the budget constraint). ... Any good where the income effect more than comp...
    Show more
    Likes(0) Reply(0)