Notes Class XII Economics (Introductory Microeconomics) Chapter 2 Theory of Consumer Behaviour

Class 12 Economics (Introductory Microeconomics) Chapter 2: Theory of Consumer Behaviour explores how consumers make choices to maximize their satisfaction within the limits of their income. This chapter introduces key concepts such as utility, marginal utility, law of diminishing marginal utility, and consumer equilibrium under one and two commodity cases. It also explains budget sets, indifference curves, and the budget line, along with the consumer’s equilibrium using indifference curve analysis. These notes are structured to help students understand complex theories with ease and prepare effectively for board exams.