Consider the following statements and select the correct answer using the codes given below: Statement I: An increase in income causes an outward shift of the indifference curve for normal goods. Statement II: A point at which the Marginal Rate of Substitution is greater than the price ratio cannot be the consumer's optimum point. Codes:

Question

Economics · Consumer Behaviour

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Both Statement I and Statement II are true

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Consumer Behaviour?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Consumer Behaviour

Which of the following territories was annexed by Lord Dalhousie under the pretext of misgovernance, and not directly through the Doctrine of Lapse?

What was the primary stated reason for the Partition of Bengal in 1905 by Lord Curzon?

Answer 1

Statement I is true, but Statement II is false

Answer 2

Statement I is false, but Statement II is true

Answer 3

Both Statement I and Statement II are true

Answer 4

Both Statement I and Statement II are false

Related Practice Questions