|Consumen Prcekenonce and Choices

| c h one between csLdinal and On dinal uors

i u t y seem to be morte nealisttc togou?
hy ?
Anscvtclinal utitit i h 1ota ma etobMAuq
w t o o can be odirlec4 obseuwcuble ond bai
wen a valul. .It enabis consomevs o rtan
th magnitea. h o w much tny prtoken ond
ood+o anolhen. Ccotdina u t u i Ccn be
exprued in ex.act n i and cabe meo brte
L C d l i o l nwmloesu Soh aus 10, 20,20ett
Ortolial vtli y,he consonml ony rankg chvas
+urma ok pokoncA but wedQ not gwe
ex act wmesucal
s hort uti Lity .It doesnt|
b9
we h magntoli h o w much à CosvMn
Prekes a good Ortctino uiu aumogicpd
Onut and ct ceannot b e mLal OrtU e s m i OF

wmb Orrlinal uttity Ioem3

SO actorn duna tO M
MorCeredalistc
thoun ok cancthal utUY
be

O Pr On , Hea Hh Prtoctock being

Tankeð. Kank ololecomine, . PrrokenL a
4HO Oman P Ho c t iotL
PrtodWCt ompall0
mauret. Ortolina tui donenas on Hu

qLlACLttvO. mOl oTimont,wnich make tmatol

COalHC rcaheu n a n ccS Clonal uuluy wheL
evawc u prra ciLLO,
aACLnti tat{ v e

2. woulD you consiclun teort ekrceealaw preaKexoniRs

b e Sup@uo8 to eaN dinal and ortdinal tulortu
? ansuoei with logic
et t u t Deknd yau

Y regcording an indivrdeal ConWppt"

Pattoes, which oecUy thoul tuo bet u y to eOLAurr
COnsvmc PrkooconCes is +o obsowe, theb ponchatng
haviort,unden ditheconte intoni, ard Pruca coum
Shances he theor worcK on aumption, whene
Cconsumer hawe conidom a set ok allkoxnatt ves befoe
haking h e porrchaing daciacon. Ihe Hhvruy s HtIA
hat iuen a consumoc budget Hhuy wiu aeto

bunclle. Comaun
akkorcd cub.It u Onl itaa.
Prreetonti al bonoll. beLDme4 Unakkorcdd
ht
hey wU Switch to a Le ePensive, clunab4
bundla eGoody
So, Jhtheors4 e tcerenlLd
Prcekeconco. consiclook
1to be
supeuion 6 he uuity Hheörs as
lne Utlu y|
eoruL Heke 0
how msr satitta et' ort
pleas std
tons ume qet b(om tth torcene e et a Poduct
SeuwiC Or 2XpOun co)
ovent And u e rCeueOlAD,

Prreron co theo{ uIrkA On tue, Ouonption tthat

CO MerUs aoe FrcEtonal
Hee, the meorty aysumes hatt
t. Cons omUs tciates dlo no+ ChanR
. lonsomes cheices lor a Ombunatn reueol|
h prtokexeca
.Consome Proketi o
COmbenat° of moce gpods
oCeA in ony setwat
Con&UmU CholL cebax e on Strcongotdorur
u
S . t asOmeL
COnutene o CongomN bONOUwior
|3. wth + h halp e scitabu oliagerams, explaLun! aul
the keato rtas indiphenence ciMLs.
Ans. Incdihteconco Cvrue. c a
g«apui cal reprerentat
a combinee prcecdvc) that gèoeL simidan kino
C Satishact" to a cons0 men taeocebs making them
)
nicoco nt . [ues point bn -1e codiACCente Cueu
Shru's hat an intivideal ort a con,omOn uinctib6eaht
bct e tewo Ptcoctuct au ct goes him e Sanne
kind b ulitity
he ecA Ees oh indihbtesnce cwrtue:
locithccoce Cuwwe sope, douruuids com u
o rtght

XACE-CREAM
-Jhe conwex dum nining manginal rcete oh Substitot(RS)
u the rteaion kor 1 good we have, +o trueao anothe
ocd.sonegative. clope a show chones.
CLuUve geo es 2reake
evel ot
4ightn lndliktestnca
utiuy

3 10

ICE CkEAM
- uantity ok cake ts iocrcealeng

uantro tCo Crccam cos teLnt

t h t maximUm scutis fat
Indibteca ccowc.(iC) gues

3
CRlndikhe°ccacO C w e , ntven otOisee

ICE-CREAM

-A B er on Same inditteonc uwe-IC1 ui

Saml satstact
-

A 8 c ties en Samo una btsON CusUe -1C,q e

SCUnut satutact
-A B A=C
.A B C, It odoelo s howt any ranking e
Satistact", so, th2 cLwwe, eb Tannst interRet eae

4.A bucget iu noting but odemcnd cuuwe HL

inL
en t
Consuma exprteued to +tmA ek t u o goools geo
huony incom and pri ce k thLe tuwo cowmoditiu'
Explai.
HS.Bodget line uartaphical neptOALAt AtN Ok a
which can be
Pouusla Comboatiors e two goods
Por oagQU weth awan Com. and pruce Suchthcut
he cot oteach ot hele ombinat% a eaLial to
he mony in coma e n e conlvndn
In abudget conraLnt, ue quant ef onc
good u mealorteo o he hOrtizontal aveA Cnd t t n

o4he good i mealorca) or) ne vetial ava u a

butget COnstsaintt suouS h e vasu0Ls COM benatn

atord
 Demand And Sopp Analyiy
1. Explas t h ha ctores thhat cauye demard c u u e to
Shit .explaan the sShit et demand aswe a p u ica

AsJh, tmand ort a gpod depends on SevaNal

fetorts Soch a preice. Oh he awod, PeroLu
Lalky >adu09LRACn9 inCom0, con/ilon G
oniomOs aood Changes in tco^le and eglidn .
Hsa, u e Suurt èn domano c u u e OccureA uwhon
a th e sama. Ptci co. conomorI asee w c i n g tobuy
higherlovr lava) quantity ef feods. Jhu w i ocwr
Hee a suut to the. condittos of deman .
Factores ccLng comcurn owetoctt:
|2. Crcedit facilittas

3.Qvalty
4.Acuesiing
S.Substitote
6.ComplamLnts
4weathin
S.Expectandot terco.prcice incuase
nounge cwncum ytanCO
o . ECñDmi C
Cuel
weuUh ekect

u oLntid
3 Defene demard and deacreibe i t detenmisant wit
|Suikakote exampls
Ans. Demand rteestg to a conLmIs deyiseo to potchhoe
gcods and soswico and uulluranen to pay a
a speeihi c. gocoand Swwtte.
ort
fort ianco an in reeaje,o Muo preict of cuKOO|
wiu uad to on de crceaein t u quantit tHhad mou
be clamonotað by cons.omes. Simdco l4,aooooe
t the out OrdseLling. prtice ek a 9to uwill mot ukuly
uad +o an inuceoe. in t0. oleman) quatief
he qooc
Octominants uwittns scuikcobla exCUnplosi
1. Prcè CA Ok tthe pcodvct: Deman c ot t u pitodwet

Chnges as pQ n ChOue to t u e prci Ce Ok t t h

COmmodli t . Pcop le. oleeiolin +0 buuu a peOcLLCEE
Cemain corkant onli k auHL faitorts rcelates
toitesmaun conskan*
.OcOnna, Of h consomO uwhuo incomo. tcises, so wiLI thA
So uwil
uantit4 clemcndod. uhen incnme. klls ,
dlemand
8.Predco otratatod good, esSCuicos Fort a comptientee
Prcoductao coCMease, in . coE e bnL Comooi ty

wuu de crteose u e clarmano or a

Compli nnentLY O
PHOcLwcE . eq:-an crease in LO, tcato ok b u t t ,
Sumul auUy, ao cocc000 Ae i ( atL Ok ene c0 MmOcLt
wuu aeniratA h o dermond o r o Scubt fule p rcoclu

4.onsumeL eXpetatioo- High eypetat of incomo. ort

expecttN v t h incrceose in pru co o o l also
a d s to a 'ncce aLe, io olecman d. Sunlasty , loud
expetka ot inwmo Crt Cnud prei cina ot Acoc uu
ole trueage, u e demand
5. PAe, in HhO. maaket ktuO numben of buues3 hos
C Ccommoctity asee morte. ove legs, +hen ttue uvilu
be a
Shit in odemonel
'

3.Exptain why mackt euuilibrium u highu untabl

Ans Movuket emulibrcivm u doOimine) o h o tthe
lanti ty deroanolod a commodity. bctnmis
ecual Yo tue, ptantt f Suppue).
An wnstabl uiti breiwm Ckeyt iht
SUCpus preOmpty tae pru CA. to riu e tranen tthab
hulL Ahigher prti Ce Causes adocre0ale, to h
uenti ty olemanded (aceortolinq. 40 + u lauw O
dtmand and an isocoase tn He. CUntity suppuo4
(acLocoling to ue. Cauooupp
T
SupeY m ao,unitabal
j L i u breiunn Cun occurt a t fwo OCcaion3:-
() Ngatt@ly, soped suPply cuuwe'- It oCewes unn
h i e , asunagcti uel s
Copev olemanol eWe,uhith
NoTmal and ancgcttuey soDeD supPE we,
which araso. exceptona. Cake. A ngcu
Sopin supp+ wuve, u pARib lo. uwne both
crceien PtTocUN a decrCeaiog. cotS Oceu
luonDmi es coulo. ontoyed bye m

Quant
) Poutvel SiofeD odemandCuu0: A second s cenartio

Cusue iu uual ad demano cLuwe. ia peitiuey

Sopin. Svch a 0mand e we, u oppu cerblei

bben qCOdA, demcore) gocds up wuite ue prti Ce

t tue
ttue wmmncti4tt rteL anol vite,-vesa
 M

tmmA is a svclolan Kise io prtekescLn

C tpr
|4. Sup pose diu
Chocotoatis But e cet ek PreoclwAn rLis
milk. ke. a olemand suppu
+o ris e prtice. ok toue. equutu brqvm
oletetmineunet hoppes
MocLeL, to caie.
Pruce and quantty io t u i
Jhe oVeaLL ehheer On prce
As. E Kheet on prcice
potau uOrek entao
mOrc. ompi Codoe.+Hgh.

Prci Co. MOrl

CrteaAin g a e eeuelubrci vm

man c r Suuppu dosuint, fru Cos and quanki to

Sek ots in gena q l d i n e t 0n e eqltbrtwh.

S. h a olLmand kiod but svpr } prtodwct

incrceyes, wh at happens to eaLili brium price and
Lan+y?
wg. 'k demand oloerceO and suPp4 *Ceman
unchangeð then it a d s Ho touxe eauilibreUm
Pru c Ond o u a n quantit4 . k upp tnGtemse
Ond odemand cemaen Cunchanged Haen i t ueod
4o louen. Ouilibrcivm pric and higuese muautity
Theorts ek Firtm: than a
.IE mOte adwiu abl. to kortm a COmpany
PathiUhA" Do you agru uith thi Statemint
Give jwtkicatkort yaun aniuwes

R.Acoopemative. e mstt idec. horum ek j i n y

Stu ik u n t Nesu4 Popula uhaut a tua r t e o n

on ttuin in uun opinon?

nSIt is a siotL Ownathp sm), fosrUMip
t and 4e joint stock con faus os clecube)
s copitatutic tortm et bounas orrgonstion
he ores et buinsk o rrqowisadion asu
OPaAed wi th av ed omaking prot.
SoLty as c unesA. Lou n
mmut ua becLL O
spemk hor
t prohit mat1 ve, laA¢ SomY aso,
prcogacdonda, ofc e wortkind aa
acuestuement .,

eploitE ed the conumeu a e torc cU Fo pa i

CAeOOeagedq|
Puces Hue potoclctn ot (wrUriA
h c t o: neeetauus oege ued.
m o el i l koc
O p i n i o n "A coOp«e1OLAUG u
butiney s-lcu A u not vesus Populao becaje
aurtL to in cOAtivIz showheldo
- Poue91 be0mes COntr alizeo

- lack ok matket ort Coomunsty so8por

- NOt Plannin ko Socenion.
-ue CDUwclOuwÓ
in Marris
(3. D i u u s tue t u r e ongtrranti oiscus ew
TLory oncl u n rmolL t auueving gruOWh
mayimiuation)
toMartruu , m a n a e A max Lz u
Ans Ace orcclig
ro0tla Sobet tOmanguual
koum balancod tOUNh
conAtteintj Jue Conskttunk cwu
and hinuo c i a l
.

Hu
Maunagolal (onaArteLnt:. He OnnphoUod O

o n a obetUe. AC. +o im,

OchewingL orcaanireti
+Cam mahagesiA skiu4, Oxpeoutiu e, e{tfC siocouty

Crceoutey CDnrcunts gecouwth N u Cmplogis

o
used 4o inuteouse, anel breiog a Skilly nf
maube
he uum; houewe nO recevits laK h expeoiesto
Lomako, quidk eleeis io v , oticn may po. asanot
onskrtaint.
Jhis onstrcotint u Celoted|
) Cinanci al Conetsraiat:.
O 4ue. poudono neldo0 mana gin. hinantta{
Maruces prcoPosOD tthot o Sound
OADUST (01 hCO
henan ci potiat wiu be a s ep oo at l a t
 u
bncincial frati os, Mich s t 4ue iuut kor
t r t m cOOHh. Jhose a l :
(1) Cbt oqitu trattO Jhiu u thateceti o bewenb
bOrtCOayed capital a owna Capt c

LRe and cwrCtconl i abiuu

e
) Retention rtaliO:- Rotio b e w e e n «ClACAD
Prcotet and total peojis
t h e aolwantaqes
and U m i t a t o s 5
4.Discus
boin g jount StocK uompau
{otming_aiount Stok tompay
AdwantaqeS o
. ünitted uabiu iabititt oashoouholdor u
uitedd
has pSpeUa o
.Peptwal sockiO n;- A compau
Continwous exiy tenL

disttributed Ovdna Caotqe. no. ek Sh OMolcU1.

y Pubtic onti ddonca - Jnl o pci tion d bianual
PoLLtto e j Ount StO ck ompcmuUs aoe knouWO toHme
p u blu c
stOK wmpamy
S,ECOnonnic develop mOE: S ount
fue rfaei cl todD
has breon CRAeoniiblo o r
Siom in mony Covnttti
eindutrmus n c 4treLdo.
.ELonOioy olao1ge co Opot Cuth: - t canunlotla
buunes on t a1qdCal
4Jrras[etabtliy efch e Ircon saCt Ok Sho y
b e o n tooindiviclvoy ave ealq.
8.Lag Capltal:- A compan, Can S wrtelasuaa
Capik cl conpaveð to aeo ttt aden ort pasnasha
himitaions oK Loreming ajoint sBeck OMpu
1,Cevtuy and olikuuktoEe:-Nunben EK Leeqal
horemolitis muyt beobse9wO by u e Heonnoted
.speol; Feuw irncllwielULA mcy OrUNON+ue

. High taation- 1oint stock come cuuits howe Yo puy tay te

al iohgo srcttos.
 has +O
u.Ex CL we gOverdOmnx ontrcoL: Compau,
S u b u k many SslaAenanh rcetortns idlue qouE
l a o r celationg :- tn toipemy borm
Lak ek good Lon a l eontact
ortaanucti00 t e u lack o p
e
bOttvecn OwnesLs and wOCAU
6. Del0u iooleLyiong:- Due 4 O t U ,
hio1 Cn{ o v e ,
oli t6 entOvey
aprcÕvaL hos 4O be. Obtain ed t
bekONR a {oal ciisiou
olepaoctmanA
duktestent
Cam b etahlN
te Fueoru
oue, amuong
On a Cutt Cal notL, which

sceneio y 1noua?
eluwank in preient buyinus