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  #51  
Old Wednesday, January 09, 2013
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2006 ka economics paper is not available....where to get it from
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  #52  
Old Thursday, January 10, 2013
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there is a css optional subject past paper book is available published by doggars group you will get uptodate papers there
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  #53  
Old Thursday, January 10, 2013
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THEORY OF CONSUMER BEHAVIOUR
INTRODUCTION: consumer is that economic agent around which all economic activities revolve
FUNDAMENTAL ECO PROBLEM:SCARCITY OF RESOURCES & unlimited wants,with limited income and he want to maximise his utility within his limited incomE
ASSUMPTION OF CONSUMER BERHAVIOUR
1.RATIONALITY ,2.COMPLETE INFORMATION, 3. AXIOM OF CONSISTENCY ,4. AXIOM OF TRANSITITVITY
APPROACHES TO MEAR UTILITY
two basic approaches to measure
1. CARDINAL APPROACH
2. ORDINAL APPROACH (I.C APPROACH, REVEALED PREFERENCE APPROACH)
CARDINAL APPROACH
According to them utility is measuable in units
ASSUMPTIONS
1.RATIONALITY,2.UTILITY IS CARDINAL,3.MU IS CONTANT,4.DMU HOLD.5.TU DEPENDS UPON THE QUANTITIES CONSUMED
CONSUMER EQUILIBRIUM
Lets assume a person is consuming a comodity x and the quantity is qx with market price px,&he derive utility U
TU=U
TOTAL EXPENDITURE=qx.px
TO MINIMISE UTILITY here consumer will enjoy utility if he maximize the difference between TU &TOTAL EXPENDITUREOBJECTIVE OF CONSUMER IS
OBJECT FUNCTION=U-qxpx
foc of utility maximization is i.e take fist order derivative =0
CHOICE VARIABLE :qx
du/dqx-dqxpx/dqx=0
MUqx=MUX= du/dqx-px(dqx/dqx)=0
MUx-px=0
MUx=PX
BENIFIT=COST
IF THE ADDITIONAL MUx is equal to benifits then the consumer is in eqbm
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  #54  
Old Thursday, January 10, 2013
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DERIVE THE DEMND CURVE
Consumer behaviour is reflected by the demand curve ,we will apply the law of DMU & FOC of eqbm

GRAPHIC REPRESENTATION ( I HAVE MAILED)
CRITICISM:
1.UTILITY CANNOT BE MEASURED
2.MU of money is not constant
3.axiom of DMU is jst an interospection
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Old Thursday, January 10, 2013
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ORDINAL APPROACH
Utiliy is not measurable but consumer can rank his performancesi.e in qualitative way
ASSUMPTIONS:
1.rationality
2.utility can be rankd
3. law of dmrsx,y hold
4.TU=F(.......)
ORDINAL APPROCHE give two approches
1.I.C approach
2.revealed prefrence theorey

INDIFERENCE CURVE APPROACH(I.C)
three basic tool of this approach
a.I.C curve
b.slope of I.C
c.budget line (B.L)

I.C
it shows the differenent combination of the commodities (x,y) which provide equal level of satisfactionto the consumer

graphic presentaion of IC

PROPERTIES OF I.C
1.I.C IS NEGATIVELY SLOPED
2.I.C CAN NEVR INTERSECT
3.I.C IS CONVEX TO THE ORIGIN
4.HIGHER I.C SHOWS HIGHER LEVEL OF SATISFACTION
SLOPE OF I.C
I.C slope simply shows the marginal rate of change in the combination of x & y for e.g if we to increase unit of x,how many units of comodity y you have to forgive/sacrifice
rate of change between a and b point on graph=vertical difference /horizontal difference i.e dy/dx
MRSxy=MUx/MUy=-dy/dx
the negative sign represent negative slope
BUDGET LINE
B.L is a limit that income places on the consumer choices
y=pxqx+pyqy
income=total expenditure on good x+total expenditure on good y
SLOPE OF B.L
IT IS THE RATIO OF THE TWO COMMODITIES i.e
y/py/y/px=px/py
it is the negative sloped
[U]DERIVATION OF THE EQBM OF THE CONSUMER[/U
the consumer will be in eqbm when he maximise his utility ,given his income & yhe market price
TWO CONDITIONS THAT MUST BE FILLED
1.MRSx,y= MUx/MUy=px/py (necessary condition)
2.I.C be convex to the origin (this condition is filled by axiom of DMRSx,
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  #56  
Old Thursday, August 15, 2013
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plz further guide........ em feeling damn difficulty in preparing economics.......no background as such strong in eco. but i opt it wanna stick to it.. people follow proper way of preparing subjects i wanna know thhat in eco...
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  #57  
Old Thursday, August 15, 2013
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plz further guide........ em feeling damn difficulty in preparing economics.......no background as such strong in eco. but i opt it wanna stick to it.. people follow proper way of preparing subjects i wanna know thhat in eco...
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Old Monday, December 16, 2013
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I want to know the that as for starting CSS preparation one should read the whole books?????
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