12th Class Economics Solved Paper - Economics 2017 Delhi Set-I

  • question_answer
    Explain the conditions of consumer's equilibrium under indifference curve approach.


    Intensity of desire a commodity, tends to decrease as more and more units of a commodity are consumed. In other words, successive units of consumption offer less satisfaction. It is considered as the law of diminishing marginal rate of substitution.
                 In other words, it is a ratio of number of unit of goods sacrificed to produce one additional unit of other goods by substituting, the resources:
                 For ex:
    Good Good MRS
    1 10 ?
    2 7 3
    3 5 2
    4 4 1

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