Question

For a consumer to recognize how many commodities he/she should buy, which approach is used?

Options

• Utility Approach

• Indifference Curve Approach

• Both of the above

• None of the above

Answer 1

Both of the above

Explanation:

When a consumer is willing to spend money on a stock of goods that can meet his need, this is referred to as the utility method. The indifference curve approach provides a tabular representation of various combinations of two commodities that result in the same degree of consumer pleasure. Both of them assist a customer in determining how much of a product they require in order to be satisfied.