1. What is Indifference Curve, explain with the help of diagram and also explain its properties.
2. Consider the demand for a good. At price Rs 4, the demand for the good is 25 units. Suppose price of the good increases to Rs 5, and as a result, the demand for the good falls to 20 units. Calculate the price elasticity?
3.a. Two goods have a cross-price elasticity of demand of +1.2 (a) would you describe the goods as substitutes or complements? (b) If the price of one of the goods rises by 5 per cent, what will happen to the demand for the other good, holding other factors constant?
3.b. Calculate Marginal Utility and Average Utility from the information given in the below table:
|Quantity Consumed||Total Utility|
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