Question : Statement 1: Indifference curves represent different combinations of goods that give the consumer the same level of satisfaction.

Statement 2: The consumer chooses the consumption bundle that lies on the highest attainable indifference curve.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.

Question : Statement 1: The consumer's equilibrium is achieved when the budget line is steeper than the highest attainable indifference curve.

Statement 2: The consumer's equilibrium is determined by the intersection of the budget line and the highest attainable

Question : Statement 1: An individual's indifference curve is concave to the origin.

Statement 2: The concavity of indifference curves reflects the diminishing marginal rate of substitution.

Question : Statement 1: The concept of consumer equilibrium can occur at multiple points of tangency between the budget line and indifference curves.

Statement 2: The consumer can achieve the same level of utility by choosing different combinations of goods that are equally

Question : Statement 1: The concept of consumer equilibrium assumes that the consumer has perfect information about prices and product attributes.

Statement 2: The consumer's equilibrium is based on rational decision-making and the pursuit of maximum satisfaction.

Question : Statement 1: Consumer surplus represents the difference between the price a consumer is willing to pay for a good and the price they actually pay.

Statement 2: Consumer surplus reflects the additional satisfaction gained by the consumer from purchasing the good.