The correct answer is:
- a-3, b-1, c-4, d-2
Here is a brief explanation of each option:
- a. Convexity of the indifference curve to origin
The convexity of the indifference curve to origin means that the consumer is willing to give up less of one good to obtain more of another good, the more of the first good he already has. This is because the marginal utility of a good declines as the consumer consumes more of it.
- b. Quantity of certain goods sacrificed for a large quantity of other goods
The quantity of certain goods sacrificed for a large quantity of other goods is called the marginal rate of substitution. It is the amount of one good that a consumer is willing to give up to obtain one more unit of another good.
- c. Equality of the ratio of the marginal utilities with that of the prices of the two goods
The equality of the ratio of the marginal utilities with that of the prices of the two goods is called the consumer’s equilibrium. It is the point at which the consumer is maximizing his utility, given his budget constraint.
- d. Separation of substitution and income effects from the total price effect
The separation of substitution and income effects from the total price effect is called the Slutsky equation. It is a mathematical equation that allows us to decompose the total price effect into a substitution effect and an income effect.
I hope this helps! Let me know if you have any other questions.