Question : Assertion: Indifference curves cannot intersect each other.
Reason: If indifference curves intersect, it would violate the transitivity assumption of consumer preferences.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct answer is (a) Option A Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Indifference curves represent different combinations of goods that provide the consumer with the same level of satisfaction or utility. If indifference curves were to intersect, it would imply that the consumer is indifferent between two different combinations of goods at the same time, which would violate the transitivity assumption of consumer preferences. Transitivity assumes that if a consumer prefers bundle A to bundle B and bundle B to bundle C, then the consumer should also prefer bundle A to bundle $\mathrm{C}$. Therefore, the intersection of indifference curves is not consistent with the assumption of transitivity and is not observed in the theory of consumer behavior.
Question : Assertion: Consumer equilibrium can occur at multiple points of tangency between the budget line and indifference curves.
Reason: The consumer can achieve the same level of utility by choosing different combinations of goods that are equally preferable.
Question : Assertion: Consumer equilibrium occurs when the consumer's budget line is tangent to the highest possible indifference curve.
Reason: At this point, the consumer is maximizing their utility within the given budget constraint.
Question : Assertion: Branding helps in creating differentiation and recognition for products.
Reason: Branding does not play a significant role in consumer preferences and loyalty.
Question : Assertion: Packaging plays a crucial role in attracting customers and enhancing convenience.
Reason: Packaging has no impact on product visibility and consumer preferences.
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