CHAPTER 2

Question 1

DEMONSTRATION EFFECT/ BANDWAON EFFECT

Answer 1

IT IS PSYCHOLOGICAL EFFECT IN WHICH PEOPLE DO THE SAME THING WHAT OTHERS DO . THEY DO NOT HAVE THERE OWN BELIEFS AND THINKING
(DEMAND INCREASE)

Question 2

SNOB EFFECT

Answer 2

SHOW OFF / ONLY EXPENSIVE GOODS
(DEMAND DECREASE)

Question 3

VEBLEN EFFECT

Answer 3

STATUS SYMBOLS

Question 4

EXPANSION AND CONTRACTION IN DEMAND CURVE

Answer 4

PRICES MEI CHANGES
OTHER THINGS REMAINS CONSTANT

Question 5

INCREASE AND DECREASE IN DEMAND

Answer 5

PRICE CONSTANT
OTHER THINGS CHANGES

Question 6

MOVEMENT ALONG DEMAND CURVE
SHIFT OF DEMAND CURVE

Answer 6

EXPANSION AND CONTRACTION
INCREASE AND DECREASE

Question 7

INDIFFERENCE CURVE ANALYSIS

Answer 7

Indifference Curve wo line hoti hai jo aise combinations ko dikhati hai jinse consumer ko barabar wali khushi (satisfaction) milti hai.

Question 8

Indifference curves kabhi cut nahi karti

Answer 8

➤ Kyunki ek consumer ek hi time par 2 alag satisfaction levels pe nahi ho sakta.

Question 9

INDIFFERNCE

Answer 9

Jab 2 options mein farak nahi padta, dono barabar lagte hain

Question 9

MRS

Answer 9

MRS kam hoti jaati hai, kyunki tu har baar same exchange nahi karega.
Jaise:
Marginal Rate of Substitution (MRS) = Rate at which consumer is willing to exchange one good for another.

Question 10

BUDGET LINE

Answer 10

Budget Line wo line hai jo dikhati hai ke consumer apni limited income se 2 goods ka maximum combination kaise le sakta hai.

Question 11

Relation Between Budget Line and Indifference Curve:

Answer 11

ndifference Curve dikhata hai khushi

Budget Line dikhata hai paise ki aukaat

jahan Indifference Curve aur Budget Line touch karte hain = Best Combo / Consumer Equilibrium

Question 11

CONSUMER EQULIBRUIM

Answer 11

Consumer Equilibrium woh point hota hai jahan consumer apni income poori use karke aisa combination choose karta hai jo usko maximum satisfaction deta hai.

Question 12

1)INDIFFERENCE CURVE
2)BUDGET LINE
3) EQULIBIRUM

Answer 12

1)Batata hai kya pasand hai
2)Batata hai kitna afford kar sakta hai
3)Batata hai kya lena chahiye to get max satisfaction

Question 13

SOCIAL EFFICENY

Answer 13

Jab goods ya services ka production aur use aisa hota hai ki sabse zyada fayda (benefit) society ko mile, bina kisi ka nuksaan kiye — usko socially efficient kehte hain.

Question 14

Perfectly Inelastic” ka matlab:

Answer 14

Jab kisi cheez ki supply ya demand keemat badhne ya ghatne par bhi bilkul nahi badalti, to usay perfectly inelastic kehte hain.