SGTB Khalsa College
Delhi University
Name of Course: B.A. (Hons.) Economics
Name of Paper: Intermediate Microeconomics I: Behavioural foundations of Market Interac-
tions
Practice Questions - Chapter 2-4 S&F
Graph the following. Clearly label axes, intercepts and show the direction of increase in utility wherever
applicable.
1. Indifference curves for two goods which the consumer likes but does not like to consume together.
2. A concave indifference curve with convex preferences and a concave indifference curve with non-convex
preferrences.
3. The optimum bundle for well-behaved convex preferences.
4. The optimum bundle for subsitute goods when slope of IC is greater than the slope of the budget line.
5. The optimum bundle for subsitute goods when slope of IC is less than the slope of the budget line.
6. The optimum bundle for subsitute goods when slope of IC is equal to the slope of the budget line.
7. The optimum bundle for complement goods showing the impact of change in slope of the budget line.
8. The bugdet line when income M and Px double but Py remains unchanged.
9. The bugdet line when income M and Py double but Px remains unchanged.
10. The bugdet line when income M triples and Px and Py double.
11. The bugdet line when income M is halved, Px doubles but Py remains unchanged.
12. The bugdet line when income M is halved, Py doubles but Px remains unchanged.
13. The income expansion path when both goods are normal goods.
14. The income expansion path when good 1 is normal and good 2 is inferior.
15. The income expansion path when good 2 is normal and good 1 is inferior.
16. Engel curve for normal goods.
17. Engel curve for non-Giffen inferior goods.
18. Engel curve for Giffen goods.
19. Engel curve for a good whose consumption is independent of income.
20. Price offer curve when price of good 1 changes.
21. Price offer curve when price of good 2 changes.
22. Price offer curve when price of good 1 changes and good 1 is inferior.
23. Price offer curve when price of good 2 changes and good 2 is inferior.
24. Price offer curve when price of good 1 changes and good 1 is Giffen.
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25. Price offer curve when price of good 2 changes and good 2 is Giffen.
26. Price offer curve when good 1 and good 2 are substitutes and price of good 2 rises.
27. Price offer curve when good 1 and good 2 are substitutes and price of good 1 rises.
28. Price offer curve when good 1 and good 2 are complements and price of good 2 rises.
29. Price offer curve when good 1 and good 2 are complements and price of good 1 rises.
30. Slustky decomposition into income and substitution effects when only the price of good 1 changes.
31. Slustky decomposition into income and substitution effects when only the price of good 2 changes.
32. Hicksian decomposition into income and substitution effects when only the price of good 1 changes.
33. Hicksian decomposition into income and substitution effects when only the price of good 2 changes.
34. Slutsky and Hicksian decomposition into income and substitution effects when the price of both good 1
and 2 doubles.
35. Slutsky and Hicksian decomposition into income and substitution effects when the price of both good 1
and 2 is halved.
36. Slutsky and Hicksian decomposition into income and substitution effects when the price of both good 1
and 2 changes such that price ratio decreases.
37. Slutsky and Hicksian decomposition into income and substitution effects when the price of both good 1
and 2 changes such that price ratio increases
38. Kaldor decomposition into income and substitution effects when only the price of good 1 changes.
39. Kaldor decomposition into income and substitution effects when only the price of good 2 changes.
40. Derivation of the compensated demand curves.
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