Instructions:
 All Questions carry equal marks.
 All Questions are compulsory
 All answers to be explained in not more than 1000 words for question 1 and 2 and for
question 3 in not more than 500 words for each subsection. Use relevant examples,
illustrations as far as possible.
 All answers to be written individually. Discussion and group work is not advisable.
 Students are free to refer to any books/reference material/website/internet for
attempting their assignments, but are not allowed to copy the matter as it is from the
source of reference.
 Students should write the assignment in their own words. Copying of assignments from
other students is not allowed.
 Students should follow the following parameter for answering the assignment questions.

1. What is Indifference Curve, explain with the help of diagram and also explain its
properties. (10 Marks)
For Theoretical Answer
Assessment Parameter Weightage
Introduction 20%
Concepts and Application
related to the question
60%
Conclusion 20%
For Numerical Answer
Assessment Parameter Weightage
Understanding and usage
of the formula
20%
Procedure / Steps 50%
Correct Answer &
Interpretation
30%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? (10 Marks)
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?
(5 Marks)
3.b. Calculate Marginal Utility and Average Utility from the information given in the below
table: (5 Marks)
Quantity Consumed Total Utility
1 20
2 35
3 47
4 55
5 60