Download the latest CBSE Class 12 Microeconomics Consumers Equilibrium Notes in PDF format. These Class 12 Economics revision notes are carefully designed by expert teachers to align with the 2025-26 syllabus. These notes are great daily learning and last minute exam preparation and they simplify complex topics and highlight important definitions for Class 12 students.
Chapter-wise Revision Notes for Class 12 Economics Part A Microeconomics Chapter 5 Market Equilibrium
To secure a higher rank, students should use these Class 12 Economics Part A Microeconomics Chapter 5 Market Equilibrium notes for quick learning of important concepts. These exam-oriented summaries focus on difficult topics and high-weightage sections helpful in school tests and final examinations.
Part A Microeconomics Chapter 5 Market Equilibrium Revision Notes for Class 12 Economics
Question. The want satisfying power of a good is known as .................... .
a) Utility
b) Usefulness
c) Both (a) and (b)
d) None of (a) and (b)
Answer : A
Question. If a consumer is in equilibrium consuming one commodity, how will he respond to a fall in price of the commodity?
a) Decrease the consumption of the commodity
b) Increase the consumption of the commodity
c) Consumption will remain constant
d) None of the above
Answer : B
Question. Law of Equi-Marginal utility is a law of
a) Production of Wealth
b) Consumption of Wealth
c) Distribution of Wealth
d) Exchange of Wealth
Answer : B
Question. When MU is zero, TU will be ................. .
a) maximum
b) maximum and constant
c) constant
d) minimum
Answer : B
Question. The unit of utility is known as ................. .
a) marginal utility
b) MUM
c) utils
d) None of these
Answer : C
Question. The law of equi-marginal utility considers price of money as
a) zero
b) less than one
c) more than one
d) one
Answer : D
Question. According to cardinal measurement of utility
a) Utility is quantitative
b) Utility is qualitative
c) Utility is both quantitative and qualitative
d) Utility is constant
Answer : A
Question. Which of the following is/are the feature(s) of utility?
a) Subjective in nature
b) Depending upon of urgency of wants
c) Both (a) and (b)
d) None of (a) and (b)
Answer : C
Question. Which of the following is an assumption of consumer equilibrium (through utility analysis)?
a) Rationality
b) The cardinal measurability of utility
c) Constancy of the MU of money
d) All of the above
Answer : D
Question. In case of single commodity, the consumer will be in equilibrium when ....... .
a) MUX/MUY = MUM
b) MUX/PX = MUM
c) PX/PY = MUx
d) MUX = MUM
Answer : B
Question. Law of equi-marginal utility is called
a) Law of increasing utility
b) Law of diminishing utility
c) Law of substitution
d) None of the above
Answer : C
Question. Consumer’s equilibrium takes at a point where
a) MU = Price
b) MU < Price
c) MU > Price
d) None of these
Answer : A
Question. When total utility increases at a diminishing rate, marginal utility will be
a) increasing
b) diminishing
c) constant
d) diminishing but positive
Answer : D
Question. Total Utility derived from consumption of commodity will begin to fall ...... .
a) with every additional unit consumed
b) when Total Utility curve becomes flat
c) when Marginal Utility starts falling
d) when Marginal Utility becomes negative
Answer : D
Question. ………… curve is a downward sloping curve cutting the X-axis.
a)Marginal Utility
b) Total Utility
c) Average Utility
d) Both (a) and (c)
Answer : A
Question. Utility can be measured by
a) Money
b) Exchange of goods
c) Weight of the good
d) None of the above
Answer : A
Question. Cardinal utility approach was given by ..................... .
a) Prof. Alfred Marshall
b) Prof. Hicks
c) Prof. Samuelson
d) Prof. Gossen
Answer : A
Question. Utility approach is ...... .
a) cardinal
b) ordinal
c) both cardinal and ordinal
d) None of the above
Answer : C
Question. Exceptions to law of diminishing marginal utility include
a) reading
b) money
c) acquiring knowledge
d) All of these
Answer : D
Question. In accordance with the relationship between Total Utility and Marginal Utility, when MU is negative, then
a) TU increases
b) TU decreases
c) TU remains constant
d) TU becomes zero
Answer : B
Question. A consumer is in equilibrium, how will a consume behave if MUx/Px<MUx/Px?
a) Consumer will consume more of Good X and less of Good Y
b) Consumer will consume more of Good Y and less of Good X
c) Consumer more of both Good
d) Consumer less of both Good
Answer : B
Question. A consumer buys two commodities X and Y, he would be in equilibrium when ...... .
a) MUX/PX = MUY/PY
b) MUX/MUY = MUM
c) MUX/PX = MUY/PX
d) PX/PY = MUM
Answer : A
Question. “Utility is same as Usefulness”. Which of the below options fits the given statement?
a) Always true
b) Partially true
c) False
d) Incomplete
Answer : C
Question. Which of the following is not correct about consumer equilibrium through utility analysis?
a) Law of Marginal Utility does not operate
b) MUM remains constant
c) MUX = MUM
d) Consumer is rational
Answer : A
Question. In case of single commodity, a consumer is at equilibrium point, marginal utility derived from consumption of commodities is 12, find the price of that commodity? (when MUM = 1)
a) Rs 1
b) Rs 2
c) Rs 12
d) Rs 10
Answer : C
Please click the link below to download pdf file for CBSE Class 12 Microeconomics-Consumers Equilibrium (Updated March 2014).
| CBSE Class 12 Economics Consumer Equilibrium And Demand Notes |
| CBSE Class 12 Microeconomics Consumers Equilibrium Notes |
CBSE Class 12 Economics Part A Microeconomics Chapter 5 Market Equilibrium Notes
Students can use these Revision Notes for Part A Microeconomics Chapter 5 Market Equilibrium to quickly understand all the main concepts. This study material has been prepared as per the latest CBSE syllabus for Class 12. Our teachers always suggest that Class 12 students read these notes regularly as they are focused on the most important topics that usually appear in school tests and final exams.
NCERT Based Part A Microeconomics Chapter 5 Market Equilibrium Summary
Our expert team has used the official NCERT book for Class 12 Economics to design these notes. These are the notes that definitely you for your current academic year. After reading the chapter summary, you should also refer to our NCERT solutions for Class 12. Always compare your understanding with our teacher prepared answers as they will help you build a very strong base in Economics.
Part A Microeconomics Chapter 5 Market Equilibrium Complete Revision and Practice
To prepare very well for y our exams, students should also solve the MCQ questions and practice worksheets provided on this page. These extra solved questions will help you to check if you have understood all the concepts of Part A Microeconomics Chapter 5 Market Equilibrium. All study material on studiestoday.com is free and updated according to the latest Economics exam patterns. Using these revision notes daily will help you feel more confident and get better marks in your exams.
You can download the teacher prepared revision notes for CBSE Class 12 Microeconomics Consumers Equilibrium Notes from StudiesToday.com. These notes are designed as per 2025-26 academic session to help Class 12 students get the best study material for Economics.
Yes, our CBSE Class 12 Microeconomics Consumers Equilibrium Notes include 50% competency-based questions with focus on core logic, keyword definitions, and the practical application of Economics principles which is important for getting more marks in 2026 CBSE exams.
Yes, our CBSE Class 12 Microeconomics Consumers Equilibrium Notes provide a detailed, topic wise breakdown of the chapter. Fundamental definitions, complex numerical formulas and all topics of CBSE syllabus in Class 12 is covered.
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