One of the essential conditions of perfect competition is –

In a perfect competitive market :

Under income effect, consumer

The ‘substitution effect’ takes place due to change in

Indifference curve approach assumes

Consumer stops purchasing the additional units of the commodity when –

Consumer’s surplus is the highest in the case of

Marginal utility of a commodity depends on its quantity and is

The utility may be defined as

Under marginal utility analysis, utility is assumed to be a