The demand for very cheap goods is inelastic as change in prices of such goods do not change their demand by a considerable amount.
Hence B is correct option.

The Law of Diminishing Marginal Utility was given by Alfred Marshall. According to the theory, the marginal utility of a consumer goes on falling as he/she consumes more and more of  a product.

Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.

The assumptions of this Marshallian approach of consumer behaviour are:

1. Marginal utility of money is constant.

2. Utility is cardinally measurable which means that the utility or satisfaction of a consumer can be measured in terms of cardinal numbers.

3. The consumer is a rational human being.

Demand for the commodity having multiple uses has elastic demand.
Because the demand for a particular commodity which can be used in a variety of ways will be more affected by the changes in price.

If the commodity under consideration has several uses, then its demand will be elastic. When price of such a commodity increases, then it is generally put to only more urgent uses and, as a result, its demand falls. When the prices fall, then it is used for satisfying even less urgent needs and demand rises. For example, electricity is a multiple-use commodity. Fall in its price will result in substantial increase in its demand, particularly in those uses (like AC, Heat convector, etc.), where it was not employed formerly due to its high price. On the other hand, a commodity with no or few alternative uses has less elastic demand. Hence, correct answer is option A.

The indifference curve approach explain the consumers choice between two goods with constant income. The Marshallian approach or the Marshallian demand function of a consumer tells us how much of a good would be bought by the consumer with constant price, income and wealth. 

The law of demand defines that there is an inverse relation between the price of a commodity and quantity demanded of the commodity. So when price increases, the quantity demanded decreases and vice-versa.

The elasticity of demand refers to the percentage change in demand for a commodity with respect to the percentage change in any of the factors affecting the demand for that commodity. The elasticity of demand for a good is dependent upon the proportion of the consumer budget spent on it. Hence the given statement is false.

Indifference curves cannot intersect each other as it would break down the indifference curve analysis. This is because the consumer would have more than one point on the indifference curve giving him a different level of satisfaction.

A higher level of indifference curve shows higher level of satisfaction. The indifference curve would have shifted outwards due to reduction in price of goods or an increase in income which allows the consumer to purchase more goods which gives him a higher utility. 

If the indifference curve touches the y axis it would mean that the consumer is completely satisfied by consuming only one good. This is clearly wrong as on requires more than one good to be satisfied. 

An indifference curve would show all the possible combination of two goods which give the consumer the same level of satisfaction. When the indifference curve expands or contracts the level of satisfaction the new indifference curve would be different form the previous one but the combination of the goods on the new indifference curve will also give the same level of satisfaction.

An indifference curve would show all the possible combination of two goods which give the consumer the same level of satisfaction. When the indifference curve expands or contracts the level of satisfaction the new indifference curve would be different form the previous one but the combination of the goods on the new indifference curve will also give the same level of satisfaction.

If the indifference curve touches the x axis it would mean that the consumer is completely satisfied by consuming only one good. This is clearly wrong as on requires more than one good to be satisfied. 

Indifference curves are convex. This means the are downward sloping. Indifference curves will only be concave if the good are inferior. 

Assumption are :

(1) The consumer acts rationally so as to maximise satisfaction.
(2) There are two goods X and Y.
(3) The consumer possesses complete information about the prices of the goods in the market.
(4) The prices of the two goods are given.
(5) The consumer’s tastes, habits and income remain the same throughout the analysis.
(6) He prefers more of X to less of У or more of Y to less of X.
(7) An indifference curve is negatively inclined sloping downward.

An indifference curve will always have a negative slope because the consumer has to give up more of one good to purchase another good. This means the indifference curve is concave to the origin and has a rising marginal rate of subtitution. 

JR Hicks was one of the most popular British economists. He was one of the most influential economists of the 20th century. Most of his experiments were done to try and understand the behavior of the consumer by exposing and contracting various variables which affect consumer purchasing decisions. Allen is the American economist who again worked on similar studies as Hicks.  

The consumer surplus for various helps us understand its value in the market. The consumer surplus for necessities is the highest and the prices of these goods are generally low and since they are essential for survival consumers would be willing to pay a high amount for these goods. 

The indifference curve shows all the possible combination of goods with the same level of utility which the consumer can purchase with his current income, Therefore, moving up or down the indifference curve does not change the utility the consumer derives from the bundle. It only affects the combination of goods purchased by the consumer.

Hence, correct answer is option C.

The equilibrium is when the ratio of the price of goods is equal to the marginal rate of substitution. The ratio of price of goods comes from the budget line whereas the marginal rate of substitution is derived from the point of tangency on the indifference curve. 

Routine buying is a form of consumer purchasing wherein the consumer continues to buy the same product because of a good experience with the same product in the past. One of the factors driving routine purchasing is brand recognition. 

The minus sign shows the inverse relationshio between the  two.

The marginal utility of money changes depending on the inflation. Higher the inflation lower would be the utility of money as inflation reduces the value of the money and vice versa.

Option A is wrong as indifference curve has positive and negative slopes. 

The ratio of prices between good X and good Y which make one half if the indifference curve analysis. The value of ratio of price of goods is equal to the MRS which is obtained from the indifference curve. This gives the consumers equilibrium 

The indifference curve theory has 5 major assumptions. These are as follows: 

Assuming quantity of good Y is on the Y axis and the quantity of good X is on the X axis, the consumer would have to give up more of good X for one more unit of good Y as the indifference is sloping downwards. Hence, a higher MRS for commodity X for commodity Y. 

According to the law of diminishing marginal utility as the consumption increases the marginal utility tends to fall. Consumer's surplus is a phenomenon where the marginal utility derived from a product is greater than the price per unit of that product.

A demand curve is perfectly inelastic if quantity demanded for a good does not change in response to a change in price.

The consumer achieves equilibrium at a point which is in the highest possible indifference curve and which fits the budget of the consumer given the prices of both the commodities. Such a point is only possible when the budget line is tangent to the indifference curve. Therefore, only one indifference curve can touch the budget line. 

According to the concept of ordinal utility approach, it is impossible to measure utility in absolute terms and thus it cannot be compared. The reason for it being that it is a psychological phenomena. However, according to the ordinal utility theorists, a consumer can rank various combinations of goods and services according to his preference. 

An increase in demand for a commodity causes increase in equilibrium price and quantity. Price increased from P to P'. Quantity demanded increased from Q to Q'.

The more possible uses of a commodity are the greater will be its price elasticity and vice versa. So we can say that demand of electricity power is elastic because it has many uses. Other example of such type of product can be milk. Hence, correct answer is option B.