Class 12 NCERT Solutions Micro Economics - Theory of Consumer Behaviour - Free PDF Download
FAQs on NCERT Solutions for Class 12 Micro Economics Chapter 2 Theory of Consumer Behaviour
1. What is Meant by the Term Normal Good? Explain Along with Examples.
Ans: Normal goods can be referred to as a product or material that experiences an increase in its demand due to the increase in the consumer's income.
If explained graphically, the demand curve for a normal good tends to shift out when the consumer's income increases.
For example, vegetables come under normal goods. When the consumer's income rises, naturally the demand for the good also increases. The same is the case with other normal goods like fruits, clothing, electronic appliances, etc.
2. What are Complements? Give Examples of Goods that Complement Each Other.
Ans: Complements can be explained simply as the goods which complement each other or in other words which are consumed together. These can be referred to as the products which can be used only if another product is used along with it.
Examples for complements are petrol and car, ink and fountain pen, sugar and tea, etc.
Thus, it is understood that a fountain pen can't be used without ink, which makes them complements. This stands true for all other examples.
3. What is utility? Explain its types.
Ans: Utility refers to the term in microeconomics that has been given to the capacity held by a commodity to satisfy human wants and needs. Utility is further classified into the following types:
Total Utility: This refers to the total amount of satisfaction achieved from a particular commodity or service.
Marginal Utility: This refers to the change in total utility that is a result of consuming an additional unit of the commodity.
4. What does a consumer budget mean?
Ans: While a budget presents us with all combinations of services and goods that an individual may purchase within their income and according to the existing prices, the consumer budget on the other hand presents the existent purchasing capacity of a consumer with which they can purchase a total of two goods depending on the prices. Students can find more details on this available in the study material for Chapter 2 of Class 12 Microeconomics.
5. What is a budget line?
Ans: As discussed in Chapter 2 in Class 12 Microeconomics, the budget line refers to a graphical representation of all the bundles of two commodities based on the consumer’s income and the existing prices that cost the amount which is equal to a consumer’s earnings. The equation to represent a budget line is P1.X1 + P2.X2 = M. More on representing a budget line on a graph can be found in NCERT Solutions for Class 12 Micro Economics - Chapter 2 - Theory of Consumer Behaviour.
6. What are the topics covered in Chapter 2 of Class 12 Micro Economics?
Ans: Class 12 Micro Economics - Chapter 2 - Theory of Consumer Behaviour covers the following topics:
Utility and its types
Consumer’s Bundle
Consumer Budget
Budget Set
Equation and graphical representation of budget line
Change in budget line
Consumer’s Equilibrium
Marginal Rate of Substitution
Examples and properties of a budget line
Requirements of a budget line
Market Demand
Laws and changes in demand
Total Expenditure method and its geometrical method
7. How are NCERT Solutions for Chapter 2 of Class 12 Micro Economics helpful for students?
Ans: NCERT Solutions for Chapter 2 of Class 12 Microeconomics is meant to help students by providing study material that they can use to increase their understanding of the concepts taught in this chapter. These solutions provide students accurate and well-explained information that they can learn and be able to score well in their Class 12 Economics exams. These NCERT Solutions are also available in both English and Hindi mediums. These solutions are prepared by best Economics teachers in India and are based on the latest guidelines by CBSE. These solutions are available at free of cost on Vedantu website(vedantu.com) and mobile app as well.