In relation to theory of consumers behaviour, which of the following statements is INCORRECT?
When marginal utility is zero, the total utility is minimum.
The correct answer is option 3. The statement "When marginal utility is zero, the total utility is minimum" is incorrect. When marginal utility is zero, total utility is at its maximum, not minimum. Marginal utility represents the additional satisfaction derived from consuming one more unit of a good. The other statements are correct in terms of the theory of consumer behavior and utility.
Important Questions from Consumer behaviour
The concept of consumer surplus was propounded by __________.
Goods whose demand varies inversely with income are called ____ goods.
_____ have an income elasticity of demand of between 0 and +1.
According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum satisfaction at relative prices.
Which of the following is true for a normal good when there is a decrease in consumer income?
